“BSE SME LISTING ELIGIBILITY NORMS REVISED DUE TO COVID-19”
Ø 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.
Ø 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
|
Email Id
|
|
Anand chari
|
|
|
Mukesh Shah
|
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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