The previous criteria for SME migration to mainboard was positive operating profit for at least 2 out of 3 financial years.
“As a responsible market infrastructure institution (MII) and a front-line regulator, BSE continues to strengthen its regulatory framework to enhance market integrity, investor confidence and economic growth. In line with this ethos, BSE has further strengthened the eligibility norms for both SME companies seeking migration to Main Board and for companies listed on other recognized stock exchanges seeking direct listing. The move is aimed at promoting transparency, disclosure and thereby improve the quality of listings,” a BSE release said.
The rule will also apply to companies listed on other recognised stock exchanges and seeking direct listing on the BSE.
The exchange has further mandated market liquidity criteria where entity seeking to be on mainboard through migration/direct listing are required to have witnessed trading of at least 5% of the weighted average number of equity shares listed during past six months. The should also be trading on at least 80% of days during this 6 months period.
Moreover, companies are also required to have net tangible assets of at least Rs 3 crores in each of the last 3 financial years and should have compliance track record for 3 years.More to come…