Share Market Update: BSE has issued new guidelines for small and medium enterprises wishing to migrate from its SME platform to the main board.
Under this, the applicant should have a net worth of at least Rs 15 crore in the last two financial years. Under the guidelines, the applicant company is required to be listed on the SME platform for at least three years. Apart from this, they must have 250 public shareholders before being transferred to the main board.
These are the new guidelines
The operating profit of the SME should be positive in at least two of the three financial years. Also, the applicant applying for transfer to the exchange must have registered an increase in net profit in the current financial year. “The applicant should have a net worth of at least Rs 15 crore for the last two completed financial years,” BSE said in a circular. Besides, the paid-up equity capital of the applicant should be more than Rs 10 crore and the market capitalization should be more than Rs 10 crore. There should be at least Rs 25 crore.
There should be no issue with this
The applicant company should not have any case pending in the National Company Law Tribunal (NCLT) in the past or present. No regulatory action such as suspension of trading has been taken by any stock exchange against SMEs and their promoters in the last three years. Also, the applicant company along with its promoters as well as its subsidiaries should not be banned by the capital market regulator Securities and Exchange Board of India (SEBI).
The exchange also changed the eligibility criteria for listing on the SME platform. BSE said that the new guidelines will be effective from January 1, 2024. According to the data, so far 464 companies have been listed on the BSE SME platform, out of which 181 have been shifted to the main board.
Top stock exchanges BSE and National Stock Exchange (NSE) launched a dedicated platform for SMEs in March 2012 to ease the way for these companies to get listed and help them raise equity capital for growth and expansion in a cost-effective manner. Was.
