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Business News/ Markets / Stock Markets/  BSE introduces new guidelines for SMEs seeking to move to main board
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BSE introduces new guidelines for SMEs seeking to move to main board

The Bombay Stock Exchange (BSE) has introduced new guidelines for small and medium enterprises (SMEs) seeking to move to the main board from the SMEs platform.

BSE introduces new rules for SMEs seeking to move to the main board from the SMEs platform (REUTERS)Premium
BSE introduces new rules for SMEs seeking to move to the main board from the SMEs platform (REUTERS)

The Bombay Stock Exchange (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.

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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.

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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.

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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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Published: 26 Nov 2023, 02:42 PM IST
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