Notice No.   20190718-28   Notice Date   18 Jul 2019
Category   Others   Segment   SME
Subject   Networth requirement for Market Makers on SME platform

Trading Members of the cash segment are registered as Market Maker on BSE SME platform upon fulfilling the criteria of minimum Networth of Rs.1 crore and minimum one year in existence from the date of obtaining SEBI registration or in case of new membership, the director(s) of the company should have at least 3 years of experience in capital market.


Subsequently, monitoring of the Networth requirement is done on half yearly basis i.e. for the period ended March 31 (due date May 31) and September 30 (due date November 30) every year.


Market Makers on BSE SME platform are requested to take a note on the Networth adequacy to be maintained while applying for market making w.r.t. to forthcoming issues:


a.       Market making in up to ten companies shall be allowed for the initial Rs.1 crore Networth and for every incremental Networth of Rs.50 lakhs, market making in five additional companies shall be allowed.


b.      Existing Market Makers shall be allowed to continue with the market making of companies presently undertaken on SME platform with the Networth of Rs.1 crore. Point no. (a) shall be applicable to the said Market Makers while undertaking new market making assignments on the SME platform 


In case any shortfall in Networth is reported by Market Maker:


        i.            No new market making assignments on SME platform shall be allowed to be undertaken.


      ii.            The Lead Manager to the Issue and Market Maker should ensure that the required networth is reported on a periodic basis to the Exchange.


    iii.            The Lead Manager to the Issue and the listed company shall take necessary steps to appoint another Market Maker within 15 days of the notice from the Exchange.


    iv.            In case the Lead Manager and the listed company fails to take necessary steps within the stipulated timeframe, the matter shall be reported to SEBI.


      v.            Till such time new Market Maker is appointed, the present Market Maker shall continue to do market making w.r.t. the listed companies in the interest of investors to ensure adequate liquidity is made available on the SME platform.


    vi.            If name of the defaulting Market Maker is appearing in the RHP, the Lead Manager will be required to replace its name with another Market Maker who is fulfilling the criteria mentioned in point no.(a).


In case any further clarification is required in this regard, trading members may please contact Mr. Johnson Chiriyath (022-22725162) / Mr. Amit Kadam (022-22728010) or send email on  or contact Ms. Rupal Khandelwal (022-22728262) / Mr. Raghavendra Bhat (022-22728915) or send email on





Hemant Dharap                                                                      Johnson Chiriyath                  

Dy. General Manager                                                             Dy. General Manager             

Membership Compliance                                                        Membership Operations