BSE SM will increase the bar for Mainboard Migration for SME with Nifa, shareholder requirements

India’s oldest exchange BSE Limited on Monday strengthened the eligibility standard for SME companies listed to migrate to the mainboard category by increasing the need for operating pairing profitability in the last 3 financial years with minimum operating paying profit of 10 million in these financial years. It has reduced it to a minimum of 250 public shareholders.

SME in Mainboard The previous criteria for migration were positive operating pearning profit for at least 2 out of 3 financial years.

“As a responsible Market Infrastructure Institute (MII) and the front line regulator, the integrity of the BSE market continues to strengthen its regulatory structure to increase the confidence and economic growth of investors. Said improvement in the quality of the list. “

This rule will also apply to companies listed on other valid stock exchanges and seeking a direct list on BSE.

Market fluid in the exchange is more mandatory where the entity seeking to stay on the mainboard by migration/direct listing must be witnessed at least 5% of the average number of equity shares listed during the last six months. This should also be traded in at least 80% of days during this 6 -month period.

Moreover, companies need to have a net tangible wealth of at least 3 crore in the last 3 financial years and should have a record track record for 3 years.

More to come …