The Bombay Stock Exchange (BSE) has launched new guidelines for small and medium enterprises (SMEs) looking to move to the main board of the SMEs platform. According to the latest guidelines, an applicant company will have to have a net worth of at least ₹15 crore over the previous two financial years to migrate to the main board. In addition, the guidelines stipulate that the applicant company should be listed on the SME platform for a minimum of three years. Also, they should have 250 public shareholders before changing to the main board.
The other parameters for SMEs seeking to migrate to the main board under the new rules are – they should have a positive operating profit for at least two out of three financial years and have a positive profit after tax (PAT) in the immediate financial. year of making the migration request to the stock exchange.
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The paid up share capital of the applicant company should be more than ₹10 crores and the market capitalization should be at least ₹25 crores.
Also, the applicant company should not have received any winding up petition accepted by the National Company Law Tribunal (NCLT) and no material regulatory action should have been taken against the company in the past three years such as suspension of business against the SME and its. promoters of any stock exchange.
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Such firms, also their promoters and their affiliates should not be banned by the capital markets regulator Sebi.
The new guidelines will be effective from January 1, 2024, BSE said.
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So far 464 companies have been listed on the BSE SME platform, of which 181 have migrated to the main board.
BSE and the National Stock Exchange (NSE) – launched dedicated platforms for SMEs in March 2012 to enable the listing of these firms and help them raise equity capital for growth and expansion in a cost-effective manner.
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Updated: 26 Nov 2023, 14:43 IST