CIRCULAR
BSE SME EXCHANGE
BSE Ltd.
DATE: 21-01-2014
To: Angel Investors/Associations and Members of Exchange.
SUBJECT: Eligibility Criteria for Angel Investors/ Association on BSE Institutional Trading Platform
SEBI made the provision in ICDR guideline for SME companies to list without making an Initial Public Offer and trading of specified securities of small and medium enterprises including start-up companies on Institutional Trading platform by introducing Chapter XC and notified the same on 8th October 2013. Subsequently, SEBI has issued Circular No CIR/MRD/DSA/33/2013 dated October 24th, 2013 on listing without Initial Public offer and trading of specified securities of small and medium enterprises including start-up companies on Institutional Trading platform (ITP) in SME Exchanges. The circular has been posted on the SME website, www.bsesme.com for the perusal of the members.
BSE had announced the launch of its SME Institutional Trading Platform on Thursday, 28th November, 2013 laying down provisions requiring companies listing on Institutional Trading Platform to inter alia, submit an Information Memorandum. One of the Eligibility Criteria as per Clause 106Y (h) (ii) of Chapter XC of ICDR guidelines is, “At least one angel investor who is a member of an association/group of angel investors which fulfills the criteria laid down by the recognized stock exchange has invested a minimum amount of fifty lakh rupees in the equity shares of the company through such association/group.”
In view of above the Eligibility Criteria for recognition of an Angel Group/Association by the Exchange are as follows:
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Eligibility Criteria
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Details
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Track Record
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Group / Association to be in existence for minimum of one year with proper registration with the competent authority
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Members
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Group / Association to consist of minimum 25 members
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Due Diligence
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Group/Association should have proper investment monitoring process, compliance team and screening process. All the investment should be properly documented, certified and be part of the Information Memorandum
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The interested Angel Group/ Association are required to submit the application as mentioned in Annexure I along with the supporting documents to the Exchange for registration. It is further required that the Angel Group/Association should certify that the investment in the company has been facilitated by their Group/Association as per Annexure II.
In case of any clarification on the subject matter of the Notice, please contact:
Mr. Ajay Thakur on 022-2272 8291 (ajay.thakur@bseindia.com)
Mr. Parth Shah on 022-2272 8893 (parth.shah@bseindia.com )
Ajay Thakur,
Head- BSE SME
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