Under the new guidelines, companies listed on SME exchange need to have a market capitalisation of at least Rs 25 crore in order to move up to the main board, BSE said in a circular.
Explaining further, BSE said that the market capitalisation on Weighted Average Price (WAP) of preceding 20 traded days from the date of submission of application to the bourse for migration from SME platform to the main board should be equal to or in excess of Rs 25 crore.
The exchange has not tweaked guidelines pertaining to requirement of post issue capital and debarred entities.
BSE said that the firms need to ensure that their post issue capital should be over Rs 10 crore, besides, companies, their directors or promoters should not be barred from the capital markets for shifting to the main platform.
At present, firms that have a post-issue paid up capital of more than Rs 10 crore but below Rs 25 crore has the option to list on the main board or the SME Exchange. In case their post-issue paid-up capital exceeds Rs 25 crore, main board listing becomes mandatory.
BSE launched its SME platform for small and medium enterprises in March 2012. Since then, it has been receiving very positive response and 312 companies have already got listed in this segment. Of these 312 companies, as many as 71 have migrated to the main board. PTI SP MR MR
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI