: BSE SME relaxes norms for SMEs to get listed on platform #FinanceIndia #StockMarketNEWS Mumbai, May 25 (KNN) Keeping view of the challenges faced by the small companies due to pandemic, the

@StockMarketNEWS Fri 29 May, 2020

Posted in: #FinanceIndia #StockMarketNEWS

BSE SME relaxes norms for SMEs to get listed on platform #FinanceIndia #StockMarketNEWS
Mumbai, May 25 (KNN) Keeping view of the challenges faced by the small companies due to pandemic, the SME platform of BSE has relaxed the criteria for the companies to list their equity shares on the bourse.

“BSE has amended the eligibility criteria fr0m time to time to strengthen the SME Platform through various circulars. Today MSMEs are facing challenging situations due to the pandemic caused by Covid-19,” BSE SME said in a notification.

The company’s Net Tangible Assets was earlier mandated to be Rs. 3 crores which has now been revised to Rs 1.5 crores.

With regards to the track record of the company, earlier the company or the partnership/ proprietorship/ LLP firm or the firm which have been converted into the company should had to have a combined track record of at least 3 years.

Now, 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.

Earlier, 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 had to 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 had a combined positive cash accruals (earnings before depreciation and tax) fr0m operation and its net worth should be positive

But now according to the revised norm, 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.

Meanwhile, BSE SME said that all other norms (other than those revised as above) would remain unchanged. It may be noted that there will be no change in the existing guidelines for NBFC and Broking companies.

It may be noted that there is no change in the existing guidelines for listing on BSE SME platform for NBFC and Broking companies.

Also, the revised criteria would be applicable with effect fr0m June 1, 2020.

As of now, till date 321 companies are listed on BSE SME platform of which 80 have migrated to the main board. (KNN Bureau)