New guidelines issued for transfer of SMEs to Main Board

New Delhi: BSE has implemented new guidelines for small and medium enterprises wishing to migrate to the main board from its SME platform, under which the applicant must have a net worth of at least Rs 15 crore for the last two financial years. . ,

Under the guidelines, the applicant firm is required to be listed on the SME platform for at least three years. Furthermore, they must have 250 public shareholders before being transferred to the main board.

Additionally, the SME must have positive operating profit for at least any two of the three financial years and positive profit after tax (PAT) in the financial year immediately following the migration application to the exchange.

“The applicant should have a minimum net worth of Rs 15 crore for the last two completed financial years,” BSE said in a circular.

Additionally, the paid-up equity capital of the applicant should be more than Rs 10 crore and the market capitalization should be at least Rs 25 crore.

Among other criteria, the applicant company should not have received any winding up petition accepted by the National Company Law Tribunal (NCLT) and no significant regulatory action such as suspension of business against SMEs should have been taken against the firm in the last three years Was. and its promoter by any stock exchange.

Also, the applicant company, its promoters as well as its subsidiary should not be banned by the capital markets regulator SEBI.

Separately, 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.

Till now, 464 companies have been listed on the BSE SME platform, of which 181 have migrated to the main board, platform data shows.

Top stock exchanges- BSE and National Stock Exchange (NSE) launched dedicated platforms for SMEs in March 2012 to enable listing of these companies and help them raise equity capital for growth and expansion in a cost-effective manner.