Description

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

Summary

BSE has introduced unified eligibility criteria for SME companies seeking migration to Main Board and companies listed on other recognized stock exchanges seeking direct listing on Main Board. The revised criteria establish different market capitalization thresholds - Rs. 100 crores for migration and Rs. 1000 crores for direct listing.

Key Points

  • Unified eligibility criteria introduced for both SME migration and direct listing
  • Market cap requirement: Rs. 100 crores for migration, Rs. 1000 crores for direct listing (6-month average)
  • Minimum paid-up capital of Rs. 10 crores
  • Strict liquidity requirements including 5% trading volume and 80% trading days
  • Operating profit requirement of Rs. 15 crores average over 3 years
  • Minimum networth of Rs. 1 crore and net tangible assets of Rs. 3 crores
  • Promoter holding requirement of at least 20%
  • 6-month lock-in period for promoter shares (not applicable to SME migration)
  • 3-year track record requirement with clean compliance history

Regulatory Changes

  • Introduction of unified eligibility criteria framework
  • Differentiated market capitalization thresholds based on listing type
  • Enhanced liquidity parameters including minimum daily turnover of Rs. 10 lakhs and 50 daily trades
  • Stricter compliance requirements with no pending non-compliance at application time
  • Mandatory demat form requirement for 100% shareholding

Compliance Requirements

  • Companies must maintain minimum market cap for 6 months prior to application
  • Meet liquidity criteria including trading frequency and volume thresholds
  • Demonstrate consistent operating profitability over 3 years
  • Ensure promoter shareholding compliance and lock-in arrangements
  • Maintain clean regulatory record with no SEBI debarment or wilful defaulter status
  • Complete 3-year listing track record requirement

Important Dates

  • Effective immediately for new applications
  • 6-month lock-in period applies from date of BSE listing (not applicable to SME migrations)
  • Market cap calculation based on 6-month average prior to application

Impact Assessment

This revision significantly impacts companies planning Main Board listings by establishing clearer, more stringent criteria. The higher market cap threshold for direct listings (Rs. 1000 crores vs Rs. 100 crores for migration) may channel more companies through the SME route first. Enhanced liquidity requirements ensure better market participation, while strengthened compliance criteria improve market quality and investor protection.

Impact Justification

Significant regulatory change affecting listing eligibility criteria for companies seeking Main Board listing