BSE Tightens Rules for SME Migration to Main Board to Boost Quality

BSE Limited has revised the eligibility norms for small and medium enterprises (SMEs) seeking to shift from its SME platform to the main board, as per the news reports. The changes also apply to companies listed on other recognised stock exchanges that want to list directly on BSE’s main board.

Revised Profitability Criteria

Companies must now have an operating profit of ₹15 crore over the last 3 financial years, with a minimum of ₹10 crore in each year. The earlier rule required positive operating profit for at least 2 of the last 3 financial years.

Public Shareholder Requirement

The minimum number of public shareholders has been increased from 250 to 1,000. As per the reports, this change is to ensure a wider base of public participation before a company moves to the main board.

Market Liquidity Rules

As per the reports, Applicants must meet a liquidity condition of trading at least 5% of the weighted average number of equity shares listed in the previous 6 months. In addition, trading must have occurred on at least 80% of the trading days during this period.

Asset and Compliance Track Record

Companies must maintain net tangible assets of at least ₹3 crore in each of the last 3 financial years. A compliance track record for the same period is also mandatory under the revised norms.

The updated criteria will apply to both SME platform companies seeking migration and firms listed on other recognised exchanges applying for direct listing on the BSE main board.

As per reports, BSE states the new rules are part of its continuous effort to build trust with investors and strengthen the integrity of the market. The BSE SME platform has over 600 listed companies, with about 200 of them successfully moving to the mainboard. The 405 companies currently on the platform have a combined market capitalisation of ₹75,000 crore.

Read more: SME Migration to Mainboard Slows Amid Stricter SEBI Regulations!

Conclusion

The changes introduce higher thresholds for profitability, liquidity, shareholder count, and compliance, setting stricter conditions for companies aiming to list on BSE’s main board.

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