NSE Comes Up With New Migration Policy For SMEs To Shift To Main BoardAccording to the notification, the new framework will be implemented on the companies who seek to migrate from NSE's small and medium enterprise (SME) platform to the main board
ByTeena Jose•
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National Stock Exchange NSE on Thursday came out with a new framework for companies seeking to migrate from its small and medium enterprises (SME) platform to the main board, requiring the net worth of such firms be at least INR 50 crore and should have at least 1,000 public shareholders during certain period, notified NSE in its new migration framework for companies.
According to the notification, the new framework will be implemented on the companies who seek to migrate from NSE's small and medium enterprise (SME) platform to the main board. For shifting to the main-board applicant should have been listed on the SME platform of the exchange for at least 3 years and the total number of public shareholders on the last day of the preceding quarter from the date of application should be at least 1,000.
It further noted that other than setting a minimum number of public shareholders, the bourse has also made it mandatory for the applicant company to have positive cash accruals (earnings, before interest, depreciation, and Tax). The company should have to maintain the threshold number of public shareholders on the last day of the preceding quarter from the date of application.
Furthermore, it is notified that the applicant company should have positive cash accruals (Earnings before Interest, Depreciation and Tax) from operations for each of the 3 financial years preceding the migration application and has positive PAT in the immediate Financial Year of making the migration application to Exchange.
In addition to that, the company should not receive any winding-up petition admitted by the NCLT. The framework also notifies the minimum paid-up equity capital of the applicant company, which needs to be at least INR 10 crore. The capitalisation of the applicant company's equity should not be less than INR 25 crore.
Moreover, it is mandatory for the applicant company to disclose all material litigation and regulatory action to the stock exchanges where its shares are listed in an adequate and timely manner.
NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data.
