BSE increases the bar for SME migration of SMEs with higher profit, shareholder requirements

The oldest Exchange BSE Limited of India reinforced Monday the suitability standard for listed SMEs for migration to mainboard category by improving the requirement of operational profitability to RS 15 Crores for the last 3 financial years with a minimum business profit of each of these financial years. It has also increased at least number of public shareholders to 1,000 of 250.

The earlier criteria for SME migration to the parent company were a positive business profit for at least 2 of the 3 financial years.

“As a responsible market infrastructure institute (MII) and a first -line rule, BSE continues to strengthen its regulatory framework to improve the integrity of the market, the trust of investors and economic growth. In accordance with this Ethos, BSE has the eligible standards for the looking for an increase in the increase in the release, and thereby a transparency, a transparency. -release.

The rule also applies to companies mentioned on other recognized fairs and the search for direct list on the BSE.

The exchange has further imposed on the liquidity criteria for the market where entity that wants to be on the main board through migration/direct mention must be witness to the trade of at least 5% of the weighted average number of shares in the past six months. It should also be traded at least 80% of the days during this 6 -month period.

In addition, companies must also have net tangible assets of at least RS 3 crores in each of the last 3 financial years and they must have a compliance record for 3 years. More to come …