NSE Revises Eligibility Criteria For Firms To Migrate From SME Platform To Main Board

The National Stock Exchange revised the eligibility criteria for migration from Small and Medium-sized Enterprise platform to the main board.

Securities that are listed on NSE SME platform shall be eligible for listing on NSE main board only if they meet the revised criteria for the same. The revised norms are set to be effective from May 1, 2025, according to a circular issued on Thursday.

Under new eligibility norms, the company's paid-up equity capital should not be less than Rs 10 crore if they want to migrate. The average capitalisation should not be under Rs 100 crore.

According to the NSE, capitalisation will be the product of the price and and the post issue number of equity shares.

The product of the price is the average of the weekly high and low of the closing prices of the shares quoted on the stock exchange for three months preceding the application date.

When it comes to the revenue from operation, the exchange specifies that it should be over Rs 100 crore in the last financial year. The company is also required to have positive operating profit for at least two out of three financial years.

The company is also required to be listed on SME platform for at least three years and the total number of public shareholders should be at least 500 on the date of application.

Under the new norms, NSE specified that the promoter and promoter group shall be holding at least 20% of the company at the time of making application.

"As on the date of application for migration, the holding of promoters should not be less than 50% of shares held by them on the date of listing," according to the circular.

Other listing criterions include conditions like no proceedings have been admitted under insolvency and bankruptcy code against applicant company and promoting company.

The company should not have received any winding up petition admitted by NCLT or IBC. The net worth of the company should be at least Rs 75 crore. There should not be any material regulatory action in the last three years by any exchange.

The company and promoter should be free of any debarment from the Securities and Exchange Board of India. There should not be any disqualification or debarment of directors of the company by any regulatory authority. The NSE also specifies that the applicant company should not have pending investor complaints in SEBI Complaints Redressal System.