BSE Tightens SME Mainboard Listing Rules

The Bombay Stock Exchange announced on Monday a revision of the eligibility criteria for small and medium-sized enterprises (SMEs) aiming to migrate to the mainboard. This adjustment also affects companies listed on other exchanges seeking direct listing on the BSE.

The changes, according to the BSE, are designed to promote transparency and disclosure, ultimately improving the quality of listings. The revised norms require SMEs to demonstrate an operating profitability of Rs 15 crore for the last three fiscal years, with at least Rs 10 crore in each year, shifting from the previous standard of positive profits in two out of three years.

Additionally, the minimum number of public shareholders has now increased to 1,000 from 250. Companies must also show trading activity for at least 5% of the weighted average number of equity shares over the past six months, maintaining trading on 80% of days in that period, along with a minimum of Rs 3 crore in net tangible assets over three years and a consistent compliance track record.

(With inputs from agencies.)