BSE issues additional eligibility criteria for SMEs

Companies planning to be listed on the 'BSE SME ITP' platform will be required to have net tangible assets of minimum Rs 1 crore

BSE today issued a set of additional eligibility criteria for firms looking to list on the stock exchange's platform for small and medium enterprises (SME).

As per the new norms, there should not be any change in the promoters of the firm in preceding one year from date of filing the application to BSE for listing under its SME segment as well as institutional trading platform (ITP).

Besides, companies planning to be listed on the 'BSE SME ITP' platform would be required to have net tangible assets of minimum Rs 1 crore or a net income of Rs 50 lakh as per the latest audited financials, the exchange said in a notice.

Additionally, the firms listing on ITP would have to compulsory sign agreement with both the depositories -- NSDL and CDSL.

"In cases where merchant banker has made the investment in the company, the merchant banker would need to submit a due diligence certificate in the format as is prevailing in SME regulations," BSE added.

Last month, BSE had launched the 'BSE SME ITP' segment to facilitate start-up firms and SMEs to list without an initial public offer (IPO).

In addition to allowing SMEs and start-up companies to raise capital, the ITP platform provides for an easier entry and exit options for informed investors like angel investors, VCFs and PEs, among others.

The platform offers better visibility and wider investor base while offering tax benefits to long term investors.