BSE-SME trading platform to hit 50 mark soon

Mumbai, Oct 26 (KNN) The BSE-SME Platform which was launched in March this year would soon have 50 companies listed on the exchange for the small and medium enterprises while additional norms for listing have been introduced.
 
As many as 38 companies have already been listed on the exchange with the Ahmedabad-based VCU Data Management, engaged in development of mobile application system becoming the latest.  
 
“The VCU Data Management has successfully completed its public issue…” the BSE said in a release.
 
The company came out with an initial public offering of 75 lakh equity shares of Rs 10 each for cash at par at a price of Rs 25 per share, aggregating Rs 18.75 crore.
 
The BSE-SME Platform which was launched on March 13 has also received its 50thissue prospectus.  
 
“The lot concept was introduced by SEBI and accordingly, the minimum investment has been kept to Rs one lakh. This has been done to ensure that only informed investors should invest in the company. At the same time market making concept has also been introduced to create liquidity in the segment. BSE has also put additional eligibility criteria for the company desire to get listed on the SME Platform of the Exchange,” the exchange said.
 
Additional criteria for listing on the SME Platform include that the net tangible assets should be at least Rs. 1 crore as per the latest audited financial results and net worth (excluding revaluation reserves) of at least Rs. 1 crore.
 
The company should have a track record of distributable profits in terms of sec. 205 of Companies Act, 1956 for at least two years out of immediately preceding three financial years and 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. Otherwise, the net worth shall be at least Rs 3 crore, it said.
 
 The post-issue paid up capital of the company shall be at least Rs. 1 crores and the company shall mandatorily facilitate trading in demat securities and enter into an agreement with the two depositories. The Company should not have been referred to the Board for Industrial and Financial Reconstruction (BIFR) and there should be no winding up petition against the company that has been accepted by a court.