SME IPO Post Listing Compliance

Published on Saturday, April 14, 2018 by Chittorgarh.com Team | Modified on Wednesday, July 27, 2022

Small & Medium Enterprise (SME) is the backbone of Indian economy. There are over 5 Cr SMEs in India. SMEs contribute to over 8.5% in GDP.

SEBI approved SMEs to raise funds through public issues (SME IPO) in 2011. Since then many companies got listed at the SME platform of BSE and NSE Exchanges. So far a very small number of entrepreneurs showed interest in getting listed. Following are few common perceptions promoters have:

  • Increase compliance level
  • External intervention in the company's day to day affairs and
  • Takeover Threat
  • Increase ongoing cost post listing

But in reality, that's not true.

  • Listing on the SME Platform has less regulatory bottlenecks. Many post listing compliance's like preparation & publication of quarterly results, printing & circulation of the annual report, etc. are exempt for SME companies.
  • Increased information flow helps to benchmark the value of companies.
  • SME Platform Listed Companies enjoy similar benefits as companies listed on main board with much-relaxed listing norms, reduced compliance's and minimal cost of listing.
  • Robust norms for takeover are in place to curb hostile takeovers. In a majority shareholding scenario, a hostile takeover is ruled out.

Here is the list of post-listing compliance's for SME Platform Listed companies:

Post Listing Compliance for SME Platform

1Notice of Book Closure/Record DateAt least once in
a year
Notice in advance of record date At least Seven Working Days
2Notice of Board MeetingN.A.At least 2 working days prior to each meeting where dividend, bonus,
FPO and Buy Back to be considered.

At least 7 clear calendar days prior to each meeting where financial
results to be considered.

The outcome to be informed within 15 minutes of closure of the Board

Recommend or declared dividend and/or cash bonuses at least 5 days
before the commencement of Book Closure/Record Date
3Annual ReportAnnualAs soon as it is issued.
4Shareholding PatternHalf YearlyWithin 21 days from the end of each half year as per the format specified
5Financial ResultsHalf YearlyIt should be sent within 15 minutes from the closure of the meeting in
the format specified
5a1st Half YearShould be accompanied by Limited Review Report and to be submitted
within 45 days of the end of the first half year
5b2nd Half YearShould be accompanied by Audit Report and to be submitted within 60
days of end of the second half-year / financial year.
6Corporate Governance ReportQuarterlyWithin 15 days from the end of each quarter
7Reconciliation of Share Capital Audit ReportQuarterlyWithin 1 month from the end of each quarter. (To be obtained from PCA or


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