SUBJECT: Revision of eligibility criteria to strengthen the entry norms for SME exchange.
BSE SME Platform offers an entrepreneur an investor friendly environment, which
enables the listing of SMEs from the unorganized sector scattered throughout India, into a regulated and organized sector. Presently, 83 Companies are listed on BSE – SME platform as on February 4, 2015.
The Exchange has stipulated certain financial and non-financial eligibility criteria / norms for listing on SME platform in addition to the SEBI guidelines for listing of SME as laid down in the Issue of Capital and Disclosure Regulations.
In order to further strengthen and enhance the screening of companies seeking listing on the SME Segment, it is proposed to revise the above financial norms as follows:
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Norms
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Existing Norms
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Revised Norms
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Post Issue Paid up Capital:
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The post-issue paid up capital of the company shall be at least Rs. 1 crore.
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The post-issue paid up capital of the company shall be at least Rs. 3 crores .
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Net worth
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Net worth (excluding revaluation reserves) shall be at least Rs.1 crore as per the latest audited financial results.
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Net worth (excluding revaluation reserves) of at least Rs.3 crore as per the latest audited financial results.
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Net Tangible Assets
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At least Rs.1 crore as per the latest audited financial results.
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At least Rs.3 crore as per the latest audited financial results.
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Track Record
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Distributable profits in terms of Section 205 of the Companies Act 1956 for at least two years out of immediately preceding three financial years (each financial year has to be a period of at least 12 months). Extraordinary income will not be considered for the purpose of calculating distributable profits.
Or
Net worth shall be at least Rs.3 crores.
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Distributable profits in terms of Section 123 of the Companies Act 2013 for at least two years out of immediately preceding three financial years (each financial year has to be a period of at least 12 months). Extraordinary income will not be considered for the purpose of calculating distributable profits.
Or
Net worth shall be at least Rs.5 crores.
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All other norms (other than those revised as above) would remain unchanged.
The above revised criteria would be applicable with effect from April 1, 2015.
In case of any clarification on the subject matter of the Notice, please contact:
Mr. Parth Shah on 022-2272 8893 (parth.shah@bseindia.com )
Mr. Abhishek Pandey on 022-22728424 (abhishek.pandey@bseindia.com)
Khushro Bulsara Girish Joshi
General Manager Sr. General Manager
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