BSE SME LISTING ELIGIBILITY NORMS REVISED DUE TO COVID-19


BSE SME LISTING ELIGIBILITY NORMS REVISED DUE TO COVID-19

OVERVIEW

Bombay Stock Exchange (BSE) vide notice no. 20200522-21 dated 22nd May, 2020 has issued Notification related to “Relaxation in Eligibility Criteria for SMEs in view of Covid-19 Pandemic Situation”.

This circular has been issued to amend BSE circular dated 19th April 2012 related to eligibility criteria for companies seeking listing on BSE SME Platform as well as the guidelines for migration from SME Platform to main platform of BSE Ltd.

MSMEs are facing challenging situations due to the pandemic caused by Covid-19, in view of the impact of the COVID-19 pandemic and the lockdown measures undertaken by Central and State Governments.

Applicability : applicable with effect from June 1, 2020.

Key Highlight:

The following eligibility criteria for listing on BSE SME platform are relaxed as mentioned below:

Sr.    Criteria Existing (present Provisions) Revised Norms (upcoming Provisions)
 

1

 

Net Tangible Assets

 

Rs. 3 crores

 

Rs. 1.5 crores

 

 

 

2

 

 

 

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 Banks or financial institutions or Central or state government or the group company should be listed for at least two years either on the main board or SME board of the 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) from operation and its net worth should be positive

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 Banks or financial institutions or Central or state government or the group company should be listed for at least two years either on the main board or SME board of the 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

Important Notes:

  • there will be no change in the existing guidelines for NBFC and Broking companies.
  • there is no change in the existing guidelines for listing on BSESME platform for NBFC and Broking companies.
  • In case of any further clarification you may contact the following Officers:
 Name of the Officer Contact No. Email Id
 Anand chari  9820978061 [email protected]
 Mukesh Shah  9821627954 [email protected]

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Disclaimer: IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.


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Lalit Rajput is a qualified Company Secretary and graduate with 5+ years’ experience in handling Secretarial and Compliance management. Working as Proprietor at Lalit Rajput &Associates, Company Secretaries and Compliance Head at EDUXGURU. Key areas include handling Compliances related to Secretarial, Start-ups, SEBI, FEMA, Labour Laws, GST, NCLT, IPR, MCA/ROC, RTA etc. He has started his career in Adventz Group with one of leading EPC Company, Kalindee Rail Nirman - A Div. Of Texmaco Rail & Engineering Limited (erstwhile known as Kalindee Rail Nirman (Engrs.) Ltd.) and after that worked with Outcome Solutions & Services LLP, a Risk Advisory firm and S. Srinivasan & Co.,Leading Company Secretaries firm in Mumbai and Chennai. He is also an active blogger/Author at many platform and has written various articles on: Taxguru, Compliance Calendar LLP, Studycafe, Caclubindia, Casansaar, theTaxTalk, Lawyer’s Connect, IPleaders, Governance Professionals, Lawyers club India, Dealout Professionals and many more. He has also blogger at ENLIGHTEN GOVERNANCE and contributed articles in ICSI E-Corporate Manager published by ICSI Ahmadabad Chapter.

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