"All listed companies are public companies but not vice-versa" - Discuss the statement.

Listing Companies

As per listing regulations clause 7(1), only the public limited Company can be listed with the Stock Exchanges. As per Companies Act 1994, Securities of a private limited Company are prohibited for transfer and it cannot be sold publicly. So, the Stock exchanges deal with those securities which are transferable. So, no private limited Company is eligible for listing with any stock exchange but a public limited Company is not mandatory to be listed. It is the discretion of the shareholder/sponsors public limited company as to whether their Company will be placed to the Stock Exchanges for listing. So it can be said that "All listed companies are public companies but not vice-versa."