This document outlines the criteria for Small and Medium Enterprises (SMEs) to list on the SME platforms of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India. The key eligibility criteria are a positive net worth, a track record of at least 3 years of operations, and operating profits over the last 2-3 years. Additional disclosure requirements include details on directors, regulatory actions, litigation status, and defaults. SMEs listed can later migrate to the main board of the exchanges if they meet certain criteria like company size and track record. As of now, over 220 companies are listed on NSE's SME platform and over 100 have migrated from BSE's SME platform

1. What are the criteria for SME
listing?
CS Meenakshi Jayaraman

2. Research Credits
Iswariya BS
Jitesh

3. Legends Used
BIFR Board for Industrial and Financial
Reconstruction
LLP Limited Liability Partnership
BSE Bombay Stock Exchange NCLT National Company Law Tribunal
EBIDT Earnings Before Interest, Depreciation
and Tax
NSE National Stock Exchange
EBDT Earnings Before Depreciation and Tax ROC Registrar of Companies
ESC Equity Share Capital SE Stock Exchange
IBC Insolvency and Bankruptcy Code SEBI Securities and Exchange Board of India
ICDR Issue of Capital and Disclosure
Requirements
SME Small and Medium Enterprises

4. Presentation Schema
SME listing
Eligibility Criteria and Disclosures
under NSE & BSE
Migration to Main board

5. SME listing

6. SME listing
An opportunity provided to for SME entities to publicly
trade their securities like public companies with huge
net worth
As on date, SME listing is available in both the
recognised SEs - NSE and BSE
SMEs can avail this opportunity to avail various benefits
with limited cost

7. Why SME listing?
Provides recognition
Attracts Indian / Foreign investors
Access to capital
Liquidity for investors
Visibility on getting listed

8. Eligibility Criteria and
Disclosures

9. Eligibility Criteria and Disclosures
Eligibility Criteria and
Disclosures
Common in both NSE &
BSE
NSE BSE

10. Eligibility criteria for listing – NSE & BSE
Positive net worth
 Post issue paid up capital of the Company (face value) up to Rs.10 crores – covered under SME
 Post issue paid up capital of the Company (face value) between Rs.10 crores and Rs.25 crores –
covered under SME / Main board (as per Regulation 229 of SEBI (ICDR) Regulations, 2018)
Issuer Company has to be incorporated under Companies Act, 1956 / 2013

11. NSE
Applicant / Promoters*/ Promoting company, incorporated in / outside India / Proprietary /
Partnership firm and subsequently converted into a Company seeking listing must have a
track record of 3 years
*Promoters mean 1 / more persons with minimum 3 years of experience in the same line of
business and holding at least 20% of the post issue ESC, individually or severally
Operating Profit (EBIDT) from operations for at least any 2 out of 3 financial years preceding
the application
Not referred to BIFR / No proceedings under IBC against the issuer and Promoting
companies
Not received any winding up petition admitted by a NCLT / Court
No material regulatory / disciplinary action by a SE / regulatory authority in the past 3 years
against the Applicant Company

12. Disclosures
Track record of the directors of the issuer
- Status of criminal cases filed against the directors
- If all / any of the directors of issuer have / has been charge-sheeted with serious crimes like
murder, rape, forgery, economic offences - its effect on the business of the company
Any material regulatory / disciplinary action by a SE or regulatory authority in the past 1 year in
respect of
- promoters / promoting company(ies), group companies,
- companies promoted by the promoters / promoting company(ies) of the applicant company
Defaults in respect of payment of interest / principal to the debenture/ bond / fixed deposit
holders, banks, FIs by the
- applicant, promoters / promoting company(ies), group companies,
- companies promoted by the promoters/promoting company(ies) during the past 3 years
Litigation record, the nature of litigation, and status of litigation of the
- applicant, promoters / promoting company(ies), group companies,
- companies promoted by the promoters / promoting company(ies)

13. BSE
In case it has not completed its operation for 3 years then the company / partnership /
proprietorship / LLP should have been funded by Banks / financial institutions / Central / state
government / the group company should be listed for at least 2 years either on the main board /
SME board of the Exchange
The company or the partnership / proprietorship / LLP Firm or the firm which have been
converted into the Company should have combined track record of at least 3 years
Net Tangible Assets should be Rs.1.5 Crores
The company / the firm / the firm which have been converted into the company should
have combined positive cash accruals (EBDT) in any of the year out of last 3 years

14. Contd.
It is mandatory for the company to facilitate trading in demat securities and enter into
an agreement with both the depositories
It is mandatory for a company to have a website
There should not be any change in the promoters of the company in preceding one year
from date of filing the application to BSE for listing under SME segment.
Company has not been referred to BIFR (Allowed if Companies are out of BIFR)
No winding up petition admitted by the Court / liquidator has not been appointed

15. Migration to Main board

16. Migration to Main board
 SME listed on Primary Market - SME Platform can be migrated to Primary Market – Main
board upon fulfilment of prescribed criteria
 As on date, 75 and 109 Companies have migrated to Main Board in NSE – Emerge
Platform and BSE SME Platform respectively
There are 2 trading platforms in the SE-
Primary Market –
Main board platform Primary Market – SME
platform
One more advantage available to listing on SME is
Migration to Main board

17. Conclusion
NSE – Emerge has around 220 SMEs listed on its platform
As the securities are traded in a regulated platform, institutional risk investors will
be interested to invest in exciting fast growing companies
SMEs having good potential and scalability can utilise this opportunity to raise capital

18. Thank You!
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