New norms framed on SME migration to BSE main board
Rs15-cr networth for preceding 2 financial years mandatory; New guidelines effective from Jan 1, 2024
Stepping Up
- 464 firms listed on BSE SME platform
- Of which 181 migrated to the main board
- Listing on SME platform for 3 yrs compulsory
- SMEs need to have 250 public shareholders
- Firms or promoters should not have faced any regulatory action
New Delhi: BSE has put in place fresh guidelines for small and medium enterprises (SMEs) looking to migrate from its SME platform to the main board, whereby the applicant will be required to have a net worth of at least Rs15 crore for the preceding two financial years.
Under the guidelines, the applicant firm needs to be listed on the SME platform for at least three years. Besides, they need to have 250 public shareholders before shifting to the main board. In addition, the SME should have a positive operating profit for at least any two out of three financial years and have a positive profit after tax (PAT) in the immediate financial year of making the migration application to the bourse.
“The applicant should have a net worth of at least Rs15 crore for two preceding full financial years,” BSE said in a circular. Further, the paid-up equity capital of the applicant should be more than Rs10 crore and the market capitalization should be at least Rs25 crore. Among other parameters, the applicant company should not have received any winding-up petition admitted by the National Company Law Tribunal (NCLT) and no material regulatory action should have been taken against the firm in the past three years like suspension of trading against the SME and its promoters by any stock exchange.
Also, the applicant company, its promoters as well as its subsidiary should not be debarred by capital markets regulator Sebi. Separately, the exchange also tweaked the eligibility criteria for listing on the SME platform.
