Description

BSE revises unified eligibility criteria for SME companies migrating to Main Board and companies from other exchanges seeking direct listing, with different market cap thresholds.

Summary

BSE has revised the unified eligibility criteria for SME companies seeking migration to Main Board and for companies listed on other recognized stock exchanges seeking direct listing on Main Board. The circular establishes different market capitalization thresholds and comprehensive requirements covering financial, operational, and compliance parameters.

Key Points

  • Minimum paid-up capital of Rs. 10 crores required
  • Different market cap requirements: Rs. 100 crores for migration, Rs. 1000 crores for direct listing
  • Market liquidity requirements including minimum 5% trading volume and 80% trading days
  • Operating profit requirements of Rs. 15 crores average over 3 years with minimum Rs. 10 crores each year
  • Minimum networth of Rs. 1 crore and net tangible assets of Rs. 3 crores for each of the preceding three years
  • Promoter holding requirements of at least 20% at application time
  • 6-month lock-in period for promoter shares from listing date
  • No regulatory debarment or compliance violations
  • 100% shares in demat form and 3-year track record requirement

Regulatory Changes

The circular establishes unified eligibility criteria that apply to both SME companies migrating to Main Board and companies from other exchanges seeking direct listing. Key changes include specific market capitalization thresholds, detailed liquidity parameters, and comprehensive compliance requirements.

Compliance Requirements

  • Companies must meet minimum financial thresholds including paid-up capital, market cap, and profitability
  • Maintain specified trading liquidity levels over 6-month periods
  • Ensure promoter shareholding compliance and lock-in arrangements
  • Maintain clean regulatory record with no SEBI debarments or wilful default status
  • Complete 100% dematerialization of shares
  • Demonstrate 3-year listing track record with compliance history

Important Dates

  • 6-month lock-in period applies from date of listing on BSE
  • 3-year track record requirement for listing history
  • 6-month period for calculating average market capitalization and liquidity metrics

Impact Assessment

This revision provides clear pathways for companies seeking Main Board listing while ensuring adequate financial strength and market presence. The different thresholds for migration versus direct listing recognize the varying scales of operations. Companies planning migration or direct listing must ensure compliance with all specified criteria before application.

Impact Justification

Affects companies seeking migration or direct listing with specific financial and operational requirements