BSE SME exchange tightens listing norms, eligibility criteria

Suresh P Iyengar Mumbai | Updated on February 19, 2015 Published on February 19, 2015

Revised norms to come into effect from April

BSE SME has tightened the listing norms and eligibility criteria by increasing the post-issue paid up capital threshold to ₹3 crore from ₹1 crore for companies listing on the exchange platform.

The exchange has also raised the networth (excluding reserves) and tangible asset requirement to ₹3 crore from ₹1 crore. The revised norms would be applicable from April.

A company intending to list on the SME exchange should also have registered profit (excluding extraordinary income) for at least two years of the immediate three preceding financial years or a networth of ₹5 crore for three financial years before applying for listing. Earlier, the company had to maintain the profit track record or networth of ₹3 crore for three years before planning to list.

The exchange has revised the track record and financial norms to further strengthen and enhance the screening of companies seeking listing on the SME segment.

New norm for ITP

BSE SME has also prescribed additional norms for listing of specified securities on the institutional trading platform (ITP). The exchange launched the ITP to enable SME companies and start-up to achieve listing without an IPO. It connects business with good growth potential with a pool of sophisticated investors while offering a wide variety of investment opportunities to the investors.

For companies listing on ITP the minimum investment amount in a firm should be ₹10 crore or 25 per cent of the listed capital, whichever is higher. Further, the exchange added, the investment should be locked in for at least three years from the date of listing.

Mahavir Lunawat, Managing Director, Pantomath Advisory Services Group, said the revised norms would enhance the eligibility criteria of companies seeking to list and will not have any adverse impact on new listings.

“We have 10-12 companies interested in listing on BSE SME and filed applications of a market research firm and engineering goods company for listing,” he added.

Published on February 19, 2015
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