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BSE issues additional eligibility criteria for listing on BSE SME & BSE SME ITP

Mumbai, Mar 25 (KNN) Bombay Stock Exchange (BSE) has issued a set of additional eligibility criteria for firms looking to list on its platform for the small and medium enterprises SMEs), BSE SME and Institutional Trading Platform with immediate effect.

“BSE and SEBI have come out with additional eligibility criteria on SME Platform and guidelines on Institutional Trading Platform respectively,” BSE SME Exchange said in a statement.

As per the new norms, there should not be any change in the promoters of the firm in the 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.

Further, firms listing on ITP would have to compulsorily sign an agreement with both the depositories—National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (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,” the statement added.

The BSE-SME Platform which was launched on March 13 has 53 companies listed with it now. BSE SME Platform offers an entrepreneur an investor friendly environment, which enables the listing of SMEs from the unorganized sector scattered throughout India, into a regulated and organized sector.

Last month, BSE SME had launched the Institutional Trading Platform (ITP) which enables such entrepreneurs to list in the market without 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.