SME To Mainboard Switch: BSE Tightens Rules On Profitability, Minimum Public Shareholders
SME companies will now be required to have an operating profitability of at least Rs 15 crore for each of the last three financial years.
The BSE on Monday has announced changes in the eligibility norms for migration from the SME platform and for direct listings.
Under the revised framework, companies will now be required to have an operating profitability of at least Rs 15 crore for each of the last three financial years, with a minimum operating profit of Rs 10 crore in each year.
This marks a significant shift from the earlier requirement, which mandated only a positive operating profit in at least two of the preceding three financial years.
The exchange has also increased the minimum public shareholding threshold. Companies seeking to migrate or list directly on the mainboard must now have at least 1,000 public shareholders, up from the earlier requirement of 250.
This is a developing story
