SME IPO Listing - Key Requirements & Eligibility Norms
Published on Saturday, April 14, 2018 by Chittorgarh.com Team | Modified on Saturday, September 8, 2018
Small and medium enterprise (SME) in India can raise money through Initial Public Office (IPO) and get listed at the Stock Exchanges. SEBI, the market regulator came up with the guidelines for SME companies to get listed on the exchange. Below are the key requirements and eligibility norms for SME Listing in India.
Exchange Eligibility Norms for SME IPO
Eligibility Norms for Listing at SME Platform
BSE SME Requirement
NSE Emerge Requirement
Post Issue Capital (FV)
Minimum: ₹3 Cr
Maximum: ₹25 Cr
Maximum: ₹25 Cr
Net Tangible Assets: ₹3 Cr
Net Worth: ₹3 Cr (₹15 Cr for broking companies)
Distributable profits for at least 2 years out of preceding 3 completed FYs or Net worth shall be at least ₹5 Cr. Profit before tax of ₹5 Cr for broking companies
Track record of at least three years
The company should have positive cash accruals (EBDT) from operations for at least 2 financial years preceding the application and its net-worth should be positive
Mandatory facilitation of trading in Demat securities
Certificate that no winding petition or reference to BIFR
Mandatory corporate website
Promoters to attend to interview with Listing Advisory Committee
No change in promoter in preceding 1 year
The Company has not been referred to Board for Industrial and Financial Reconstruction (BIFR).
No petition for winding up is admitted by a Court of competent jurisdiction against the Applicant Company.
No material regulatory or disciplinary action by a stock exchange or regulatory authority in the past three years against the applicant.
Key SEBI Norms for SME Listing
SME Listing Norms
Minimum Subscribers in IPO
Minimum application amount/trading lot
100% Mandatory (of which 15% to be done by MB in his own account)
Through exchange registered market makers for min 3 years
Not subject to SEBI observation.
SME to Main Board Migration Criteria
Following are the criteria's for migration for moving SME to Main Board:
The company should be listed on SME Platform for at least 2 years
₹10 Cr paid up capital
< 500 shareholders – T to T group
Approval from 2/3 of non-promoters shareholders
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