NSE India National Stock Exchange of India Ltd comes out with new migration policy from SME platform to main board
April 20, 2023: The National Stock Exchange of India (NSE) has introduced a new migration policy for companies listed on its Small and Medium Enterprises (SME) platform to migrate to the main board.
The bourse said in the circular that to shift to the main-board the applicant must be listed on the SME platform of the exchange for at least 3 years and the total number of public shareholders must be at least 1,000 on the last day of the quarter preceding the date of application.
The new policy is aimed at helping successful SMEs to grow and expand their businesses by accessing a larger pool of capital.
NSE India (National Stock Exchange of India Ltd) on Thursday released a new framework for SME companies (Small and medium-sized enterprises) seeking to migrate to the main board from its small and medium enterprises (SME) platform, with a net worth of at least Rs. 50 crores is required.
“This policy will enable SMEs to unlock their true potential and expand their business by tapping into a larger pool of investors” Commenting on the new policy, Chief Business Development Officer at NSE, said.
We believe that this will lead to increased investor interest and greater participation, which will in turn drive growth and create value for all stakeholders.” he added.
The bourse said in the circular that to shift to the main-board the applicant should be listed on the SME platform of the exchange for at least 3 years and the total number of public shareholders should be at least 1,000 on the last day of the quarter preceding the date of application.
In addition, the applicant company must have positive cash accruals from operations (earnings before interest, depreciation and taxes) for each of the three financial years preceding the migration application.
Among other criteria, the applicant company must not have been referred to the Board of Industrial and Financial Reconstruction (BIFR) and no proceedings under the Insolvency and Bankruptcy Code have been filed against the issuer and the promoting companies.
Further, the company should not receive any winding-up petition accepted by the NCLT. As per the framework, applicant’s paid-up equity capital should be at least Rs. 10 crores and equity capitalization should be not be less than 25 crores.
The NSE’s new migration policy is part of its ongoing efforts to support the growth of India’s SME sector and promote entrepreneurship and innovation in the country.
The NSE’s new migration policy is expected to benefit SMEs by giving them access to a wider investor base and greater liquidity, while also providing investors with more opportunities to invest in high-growth potential companies.
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