Regulatory- SEBI SME Guidelines
- Issuer with post issue face value capital up to 10 Cr. shall be covered under the SME Platform.
- Issuer with post issue face value capital 10cr. To 25 cr. may get listed at SME Platform or on the Main Board
- Post issue face value capital above 25 Cr. has to be necessarily listed at Main Board of the Exchanges
- There are additional provisions for migration to/ from main board
- The minimum application amount as well as minimum trading lot shall not be less than 1,00,000 Rs.
- All existing Trading Members would be eligible to participate in SME exchange without any further registration
- 100% underwritten issues and Merchant Banker/s shall underwrite 15% in their own account
- The Merchant Banker to the issue will undertake market making through a stock broker who is registered as market maker with SME Exchange. He is responsible for market making for a minimum period of 3 years
Eligibility Criteria
- Net Worth : Positive Net worth
- Net Tangible Assets: Rs. 1.5 crores
- Track Record: The company or the partnership/ proprietorship/ LLP firm or the firm which have been converted into the company should have a combined track record of at least 3 years. OR
- In case it has not completed its operation for three years then the Company/Partnership/Proprietorship/LLP should have been funded by way of loan/equity by Banks or Financial Institutions or Central or State Government or its undertaking, or its Group Company should have been listed for at least two years either on the Main Board or SME Board of the Nationwide Exchange.
- The company or the firm or the firm which have been converted into the company should have combined positive cash accruals (earnings before depreciation and tax) in any of the year out of last three years and its net worth should be positive