How to List on BSE SME Exchange - Listing Requirements
SME Listing

Get Your Company Listed On BSE SME Platform

BSE is the oldest stock exchange in India and the 10th largest in the world. MSE is an extended platform of the National Stick Exchange for small and medium sized companies with a post issue paid up capital not more than 25 crore rupees. 

Why List Your Company?

Raising capital through public issue of shares is a time proven method. Startups and comparatively small companies that require capital take this route successfully.

Eligibility Criteria For Listing

BSE: The paid up equity share capital of your company has to be one crore rupees or more. The registration date as per ROC records should be minimum three years prior to the date of filing your proposal to the BSE. 

SME: The paid up capital should not go above 25 crore rupees.

General Compliances For Listing On Stock Exchanges

i. The documents to be submitted shall include all mandatory documents required for IPO vetting.

ii. The draft of the prospectus shall be in line with SEBI/ICDR regulations.

iii. None of the content shall violate the provisions of the SEBI act, Securities Contracts (Regulation) Act or the companies Act.

Requirements Prescribed For Listing

BSE has its own set of requirements for entering it by new companies. A summary of them are given below:

1. Submit application letter in an approved format.

2. CMS (Cash Management Services) for collecting listing fee.

3. Conforming to the terms of the listing agreement.

4. Payment of 1% as security.

5. Compliance with the minimum listing requirements.

6. Take permission for adding the name of BSE in the company’s literature.

7. Complying with the allotment of securities.

8. Permission to trade.

The BSE’s Listing Requirements For SMEs

i. The SME is registered with the ROC as a public limited company.

ii. The last audited financial statements should have a minimum of one crore rupees as its net worth.

iii. The merchant banker of the issuing company should underwrite 15%. The remaining 85% should also be underwritten.

iv. The post issue face value capital should not exceed rupees 25 crores and should not go below rupees one crore. 

v. The minimum number of investors for an IPO should be fifty.

vi. The distributable profits as per section 205 of the companies act should have been adhered to.

vii. The issuer company should have a working website. viii. Net Tangible Assets. It should not be less than one crore rupees.

viii. DEMAT. It should be possible to trade in DEMAT securities. It should clearly be mentioned in the agreement with National Securities Depository and Central Depository Services. 

ix. The company should not have received any orders from a court of law to liquidate its assets.

x. BIFR (The Board For Industrial And Financial reconstruction) should not have in its possession any reference about the listing SME.

The Complete Listing Process In A Nutshell

a. An experienced merchant banker.

b. Compilation of documents in tandem with legal requirements.

c. Submission of draft prospectus.

d. IPO (Initial Public Offering).

The Listing Fees of BSE SME

A onetime payment of Rs. 50, 000 has to be made along with the application. 

Drafted By:
CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director 
Certified CSR Professional., Certified GST Professional.

How to List on BSE SME Exchange - Listing Requirements
Maniraj Anantham 1 March, 2024
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