BSE introduces new guidelines for SMEs seeking to move to main board

livemint.com:

BSE) has introduced new guidelines for small and medium enterprises (SMEs) seeking to move to the main board from the SMEs platform. As per the latest guidelines, an applicant firm will be required to have a net worth of at least ₹15 crore for the preceding two financial years to migrate to the main board.

Besides, the guidelines stipulate that the applicant firm should have been listed on the SME platform for a minimum of three years. Also, they should have 250 public shareholders before shifting 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 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. NSE SME stock hits 20% upper circuit after incorporation of Singapore subsidiary The paid-up equity capital of the applicant firm should be more than ₹10 crore and the market capitalisation should be at least ₹25 crore.

Also, 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. SME IPOs are shining, but experts advise caution Such firms, their promoters as well and their subsidiaries should not be debarred by the capital markets regulator Sebi.

The new guidelines will become effective from January 1, 2024, BSE said. NSE SME stock turns ₹1.34 lakh to ₹5.85 lakh in six years So far 464 companies have been listed on the BSE SME platform, of which 181 have