BSE issues New Guidelines for Shifting SMEs to Main Board

The Bombay Stock Exchange, known as BSE, made new rules for small and medium businesses that want to move from the SME platform to the main board. Here’s what the rules say:

Money Requirement: If a company wants to move, it must have at least Rs 15 crore in the last two years.

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Time on SME Platform: The company must be on the SME platform for three years before moving.

Shareholders: Before moving, the company needs to have 250 public shareholders.

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What is said in the guidelines?

Based on the rules, a small business needs to have earned money in two out of the three recent years.

Additionally, if a company wants to move, its application must show that it made more profit this year.

“The person applying should have a total value of at least Rs 15 crore for the last two finished money years,” BSE explained in a circular.

Also, the applicant needs to have more than Rs 10 crore in paid-up equity capital and a market value of less than Rs 10 crore. It should be less than Rs 25 crore.

There should be no case in NCLT

The applying company shouldn’t have any old or current unresolved problems in the National Company Law Tribunal (NCLT).

No rules, like stopping trading, have been made against the SME or its leader by any stock market in the past three years.

And, the company applying, along with its leaders and another related company, should not be stopped by the market regulator SEBI.

The market also made some new rules about who can join the SME platform.

The guidelines will be applicable from January 1, 2024

BSE mentioned that the new rules will start on January 1, 2024. Based on the information, 464 companies joined the BSE SME platform, and 181 of them moved to the main board.

In March 2012, the big stock markets, BSE and National Stock Exchange (NSE), started a special platform for small businesses.

This made it easier for these companies to join the stock market and get money to grow without spending too much.

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