Higher-Education Faculty

Assignment Cover Sheet

Subject Business Finance

Subject Code and
Group HC2091 Group 1 □ Group 2 □ Group3 □ Group 4 □
Lecturer
Assignment Title Comparative Analysis of The ASX and NSX
Due date 26 April 2020
Submission Date 27 April 2020
Contact details Student’s name Sachin Yadav
Telephone No 0426896525
Student Email: Eab2898@my.holmes.edu.au
STUDENT/S PLEASE NOTE: I/We certify that:

1. This assignment is my/our work. I/we acknowledged and disclosed fully any
assistance received in its preparation and cited any sources from which I/we used
data, ideas, words, either quoted directly or paraphrased.

2. This assignment was prepared by me/us specifically and only for this subject.

3. This assignment has successfully been submitted to the FINAL CHECK via
SafeAssign/Blackboard and the SafeAssign report is attached to this assignment.
►Student name: __Sachin Yadav_ Signature: _____sachinyadav_____________

4. This assignment is identical with the work submitted via SafeAssign/Blackboard.

Student name/s Student number Signature

This cover sheet and the SafeAssign Paper Information must both be
attached to your assignment.

-------------------------------Cut off here and keep submission receipt------------------------------

Date: Staff Name Signature

Subject:
Subject Code:
Student name/s Student number Signature
 Melbourne - 185 Spring Street, Melbourne Australia 3000, Telephone: +61 3 9662 2055, Facsimile: +61 3 9662 2083
Sydney - Level 6, 91 York Street, Sydney Australia 2000, Telephone: + 61 2 9299 1400, Facsimile: +61 2 9299 0211

Holmes Commercial Colleges (Melbourne) Ltd ABN 50 005 085 585 Email: info@holmes.edu.au Website: www.holmes.edu.au
 Executive Summary:
This essay refers the comparison between ASX and NSX listing requirements and also includes other
information about stock exchange terms like as indices, financial products and comparison between
them first paragraph is introduction secondly it includes listing requirements with comparison and
showing strengthen requirements. In last there is reference of indices and financial products and history
of ASX(Australian stock exchange) and companies listed under different categories.

Contents:
S.R. Contents Page
no. no.

i. Introduction 3

ii. Listing requirements of ASX and NSX 4-5

iii. Types of Indices of ASX and NSX 5-6

iv. Financial product trading under ASX 6

v. History Of ASX 7

vi. No. of companies listed under ASX 7-8

Introduction:
Listing is the process of registering private organisation to making transition through a public
organisation, whose shares can be traded on a stock exchange. there are many companies
believes, listing their securities on an internationally recognised stock signifies a new era of
growth, raised profit and market significance.

ASX and NSX both are the main medium of Share Exchange in Australia. There are many listing
requirements for the ASX and the NSX.

This essay provides an overview of what is required to list a company on the Australian
Securities Exchange (ASX) and the National Stock Exchange of Australia (NSX).
Listing Requirements of
Australian Securities Exchange
(ASX):
There are many conditions and requirements for listing a company with ASX, but mainly
company should qualify basic needs of admission criteria, it includes structure, size, free float
and number of shareholders.
Number of Shareholders: According to ASX Listing Requirements, Entity should have minimum
300 non-affiliated shareholders and every shareholder must holding minimum valued $ 2000
share.
Free Float: There was no listing rule which requires an entity to maintain a minimum free float
but after 16 December 2019, ASX put a condition that every entity must balance a 20%
minimum free float.

Satisfaction of Profit test: entity must have to meet profit test, to qualify profit test entity’s
business activities must be same at the time of admitted as it was during the last 3 full financial
years. Second entity must have to provide 3 years audited accounts and entity’s aggregated
profit for last three financial years must be minimum $1 million.
The last condition is the entity’s consolidated profit for 12 months to a date no more than 2
months before the date entity applied for the admission must be more than $ 500000.

Satisfaction of asset test: Asset test is also one significance aspect to qualify for listing
requirements under this entity must have minimum net tangible assets of $4 million after
deducting cost of fund raising and a market capitalisation of at least $15 million, at the time of
admission.

Working Capital Requirement: Entity should have at least $1.5 million working Capital after
taking in to account budgeted revenue for the first full financial year after listing and allowing
for the first financial year’s budgeted administration cost and any other asset.
Listing Requirements for
National Stock Exchange of
Australia:
There is also some conditions and requirement for Listing a entity, it is also depends on
general admission criteria, entity must have to satisfy all needs , it includes basically main
points such as structure, size, account audited, profit test, asset test, capitalisation.
Briefly,
1. The company must be listed on the ASX (or one of NSX’s Recognised Stock Exchanges)
2. Provide up to the 3 years of audited reports as available for publication
3. Provide up to 12 months of released market disclosures
4. Provide a current copy of the Issuer’s Constitution for publication
5. Appoint two directors of the Issuer as Nominated Advisers or appoint an External Nominated
Adviser
6. Directors sign:
a. The Issuer declaration binding the company to NSX’s Rules
b. The director’s declaration for each director to abide by the Exchange’s operating rules
c. A deed poll addressed to NSX that bridges the gap in the Company’s constitution that refers
to the ASX and its rules
d. A deed poll addressed to ASX Settlement on the Issuer’s letterhead for continued access to
CHESS settlement via NSX
7. Provide the letter of application

Number of shareholders and capitalisation:

1: Minimum shareholder spread of 50 shareholders, each having at least $2,000 worth of
shares. The monetary value is to be determined by reference to the last traded price of the
securities on the ASX.
2: Minimum market capitalization of quoted securities, at time of listing on NSX, is $500,000.
This figure can be derived from the price of the securities to be listed on NSX at the time of
listing or from the previous market capitalisation figure from the Company’s listing on the ASX.
After analysing all listing requirements of ASX and NSX we can say that NSX has more
strengthen listing requirements.

Different Types Of indices in ASX and

NSX:
There are different types of indices and they all have its importance from the investor’s
viewpoint:
INDICES OF ASX
Franking Credit Adjusted
indices
Fixed Income indices
Sector indices
Volatility indices
Capitalisation indices
Financial Product trading Under ASX
(Australian stock exchange):
There are many financial product trading under ASX but this Paragraph explain minimum three
product with comparing open and return risk.
IMPORTANCE
It provides estimated value of
Australian equities to investors.
It measures the performance of Agriculture indices
the bond market and short-
term market so investors can
take right decisions about
investments
It helps investors to benchmark
the performance of a particular
stock market sector or
industry,
It’s like as a tool to investors
financial researchers, media
and economist to monitor the
level of near- term volatility in
Australian benchmark equity
index.
It helps investors to record
changes in the share’s prices.
INDICES OF NSX IMPORTANCE
Equities indices It helps in record
changes in equities
shares performance.
The changes in
performances of
agriculture sector share
and bond helps investors
to lower risk and
investing decisions
Community indices It provides information
about a particular
community stuck
performance to
investors.
Investment indices Investors can gain
knowledge about
investing options on a
particular investment
stock.
Property indices It provides up down in
real estate share so
investors can put their
mony on right place.
Resources indices There are many types
resources but always
arise a question which
resource company
investor invest with the
help to this index
investor knows which is
best option
Technology Indices All IT companies lies
under this index so
investors can easily
access all data and can
invest on right stock.
Product Shares Bonds Warrants
Name
Subcategorie i. Ordinary share i. Fixed rate bond i. Investments warrants
s ii. Preference ii. Floating rate bonds ii. Trading warrants
share iii. Indexed bonds
iii. Partly-paid
shares
Key benefits i. Capital growth vi. Lower risk than ix. These are Leverage
ii. Regularly other and no margin calls.
dividends paid vii. Regular interest
iii. Easy to buy and income
sell viii. Repayment at
iv. Spreading your maturity
Risk
v. Equity rights
Risks i. Return on share vi. Interest risk I. Leverage can magnify
ii. Loss of capital as vii. Credit risk losses
company can viii. Liquidity or
redeem share Marketability risk
iii. Volatility risk as
prices are not
certain
iv. Timing risk
v. Poor advice
about share can
also lead to loss

Historical Evolution of ASX (Australian

Stock Exchange):
ASX group established in late 1987, After The Australian Parliament drafted legislation. It
operated in six different states and capital cities (Hobart, Brisbane, Adelaide, Perth,
Melbourne, Sydney). It’s one of the best Stock Exchange Automated Trading System in last 100
years, it crashed worldwide stock market as system handled order deluge without issues. In
1988, SFE is the first exchange in the world to gain an exemption from part 30 of community
exchange Act. IN 1989 SFE launches SYCOM, by this step its fist world exchange system to
extends its normal floor trading with the help of an after-hour electronic trading platform. In
1990 it introduces trans-lux electronic display at Sydney exchange displaying all trades
processed via SEATS. Like this by years of years evolution ASX become the best stock exchange
system, in 206 it announces Us-based firm digital holding.
Basically, Companies listed on ASX categorised in 11 categories.
There are 2246 companies listed under ASX on 1 December 2019

Sector Number of
companies
listed
Consumer 169
Discretionary

Consumer Staples 69

Energy 174

Financials 136

Health Care 172

Industrials 156
References
Information 231 AllOrdslist. (n.d.). All Ords List - Company Data for All
Technology Ordinaries Index. Retrieved from AllOrdslist:
https://www.allordslist.com/
Materials 666 ASX, W. A. (n.d.). Retrieved from https://www.asx.com.au

Real Estate 81 Australian stock exchange. (n.d.). Listing with ASX - ASX.
Retrieved from
Telecommunication 24 https://www.asx.com.au/listings/index.htm
Services Australian Stock exchange. (n.d.). Products-ASX. Retrieved
from https://www.asx.com.au/products.htm
Utilities 28
Uncategorised 340 Daniel Scotti, N. S. (2016, 04 11). ASX introduces new
total 2246 admission requirements for entities seeking a
listing on ASX - Doing a deal - MinterEllison.
Retrieved from MinterEllison: https://www.minterellison.com/articles/asx-introduces-new-
admission-requirements-for-entities-seeking-a-listing-on-asx

National stock exchange. (n.d.). Listing. Retrieved from https://www.nsx.com.au/listing/

National Stock Exchange of australia. (n.d.). NSX - National Stock Exchange of Australia. Retrieved from
https://www.nsx.com.au/

Westpac. (n.d.). What are the main market sectors on the ASX | Westpac. Retrieved from Westpac:
https://www.westpac.com.au/personal-banking/investments/the-share-market/main-market-
sectors-on-asx/
Wikipedia. (n.d.). National Stock Exchange of Australia - Wikipedia. Retrieved from Wikipedia:
https://en.wikipedia.org/wiki/National_Stock_Exchange_of_Australia