SME Platforms facilitated by BSE and NSE are the best way for the small and medium sized companies to go public and list on the stock exchanges. These platforms which have specially designed for small and medium enterprises are the major contributors to SMEs who want to make it big. However, if an SME want to go for an IPO on stock exchange’s SME platform, the eligibility criteria laid down should be satisfied. This varies from NSE to BSE. Now check out Are you an SME? Know Eligibility from below….

Are you an SME? Know Eligibility

NSE EMERGE – Eligibility criteria:

Below are the list of credentials that have to be complied with as on the date of filing the IPO documents with the stock exchange and other concerned authorities:

BSE SME – Eligibility criteria:

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  • The applicant seeking listing or

  • The promoters or promoting company, incorporated in or outside India or

  • Partnership firm and subsequently converted into a Company before listing (not in existence as a Company for three years) and approaches the Exchange for listing.

  • The applicant has never been referred to Board for Industrial and Financial Reconstruction (BIFR).

  • No petition for winding up has been admitted by a Court of competent jurisdiction against the applicant entity.

  • No material regulatory or disciplinary action initiated by a stock exchange or regulatory authority in the past three years against the applicant company.

Any material regulatory or disciplinary action taken by a stock exchange or regulatory authority during the past one year in respect of promoters/promoting company, group companies, companies promoted by the promoters/promoting company of the applicant company.

Default in repaying interest/principal:

Details of any defaults made in respect of payment of interest and/or principal to the debenture/bond/fixed deposit holders, banks, FIs by the applicant, promoters/promoting company, group companies, companies promoted by the promoters/promoting company during the past three years

Litigation records:

‘Litigation record, the nature of litigation, and status of litigation’ of the applicant, promoters/promoting company, group companies, companies promoted by the promoters/promoting company

Criminal history if any:

In respect of the track record of the directors, the status of criminal cases filed or nature of the investigation being undertaken with regard to alleged commission of any offence by any of its directors and its effect on the business of the company, where all or any of the directors of issuer have or has been charge-sheeted with serious crimes like murder, rape, forgery, economic offences etc.

Or

The net worth shall be at least Rs.5 crores

  • The applicant company should have a website

  • The company should facilitate trading in demat form and enter into an agreement with both the depositories i.e. NSDL & CDSL.

  • There should not be any change in the promoters of the applicant company in preceding one year from date of filing the application to BSE for listing under SME segment.

  • The applicant has never been referred to Board for Industrial and Financial Reconstruction (BIFR).

  • No petition for winding up has been admitted by a Court of competent jurisdiction against the applicant entity.

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