BSE sets the stage for SMEs to the main board

Bombay Stock Exchange (BSE) issues new guidelines for SMEs to get on the main board

BSE smes to the main board

In a strategic move, the Bombay Stock Exchange (BSE) has unveiled fresh guidelines for small and medium enterprises (SMEs) eyeing a transition from its SME platform to the prestigious main board. Effective January 1, 2024, these new criteria promise an exciting journey for enterprises looking to level up their game.

To qualify for this transition, an applicant must boast a net worth of at least Rs 15 crore for the preceding two financial years and a listing history on the SME platform for a minimum of three years. The SME should also secure a commendable presence with 250 public shareholders before venturing into the main board territory.

Besides that the applicant must flaunt a positive operating profit for at least two out of the last three financial years, coupled with a positive profit after tax (PAT) in the immediate financial year of making the migration application.

“The applicant should have a net worth of at least Rs 15 crore for two preceding full financial years,” emphasized BSE in a recent circular.

Financial muscle is not the only requirement. The applicant’s paid-up equity capital should surpass Rs 10 crore, and its market capitalization should reach a minimum of Rs 25 crore.

Navigating through these thresholds, the applicant should steer clear of any winding-up petitions admitted by the National Company Law Tribunal (NCLT) and avoid any regulatory actions in the past three years. Furthermore, the applicant company, its promoters, and its subsidiaries should not be under any debarring sanctions by the capital markets regulator, SEBI.

Simultaneously, BSE has also revamped the eligibility criteria for listing on the SME platform, signaling an all-encompassing approach to elevate the SME ecosystem.

The BSE SME platform, a launchpad for growth and expansion, has seen significant participation since its inception in March 2012. To date, 464 companies have found their place on the platform, with 181 successfully making the leap to the main board.

This bold move by BSE aligns with the broader vision of nurturing and fostering the growth of SMEs, providing them with a robust platform to access equity capital for their ambitious endeavors. As the curtains rise on 2024, these new guidelines promise a thrilling chapter for SMEs aspiring to graduate to the main board and unlock new dimensions of success in the financial arena.

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