Listing on Stock exchange- BSE- SME

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LISTING PROCEDURE FOR LISTING ON BSE-SME 

ELIGIBILITY FOR LISTING

Incorporation
The Company shall be incorporated under the Companies Act, 1956 or 2013.

Financials

  • Post Issue Paid-up Capital
    The post-issue paid-up capital of the company (face value) shall not be more than Rs. 25 crores.
  • Networth
    Positive Networth.
  • Tangible Asset
    Net Tangible Assets should be Rs 1.5 Crore.
  • Track Record
  • 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.Or
  • 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 mainboard 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 the last three years and its net worth should be positive

Other Requirements

  • It is mandatory for a company to have a website.
  • It is mandatory for the company to facilitate trading in demat securities and enter into an agreement with both the depositories.
  • There should not be any change in the promoters of the company in the preceding one year from the date of filing the application to BSE for listing under the SME segment.

Disclosures
A certificate from the applicant company / promoting companies stating the following
a) " The Company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR)."
Note: Cases, where the company is out of BIFR, is allowed.
b) There is no winding-up petition against the company, which has been admitted by the court or a liquidator has not been appointed.

The 5 P'S of Listing Process on BSE SME
Description: https://www.bsesme.com/include/images/redbullet.gifPlanning
The Issuer Company consults and appoints the Merchant Banker/s in an advisory capacity.
Description: https://www.bsesme.com/include/images/redbullet.gifPreparation
The Merchant Banker prepares the documentation for filing after:

  • conducting due diligence regarding the Company i.e checking the documentation including all the financial documents, material contracts, Government Approvals, Promoter details etc.
  • and planning the IPO structure, share issuances, and financial requirements

Description: https://www.bsesme.com/include/images/redbullet.gifProcess
Application procedure:

  • Submission of DRHP/Draft Prospectus - These documents are prepared by the Merchant Banker and filed with the Exchange as well as with SEBI as per requirements.
  • Verification & Site Visit - BSE verifies the documents and processes the same. A visit to the company's site shall be undertaken by the Exchange official. The Promoters are called for an interview with the Listing Advisory Committee.
  • Approval - BSE issues an In-Principle approval on the recommendation of the Committee, provided all the requirements are compiled by the Issuer Company.
    Filing of RHP/Prospectus - Merchant Banker files these documents with the ROC indicating the opening and closing date of the issue.
    Once approval is received from the ROC, they intimate the Exchange regarding the opening dates of the issue along with the required documents.

Description: https://www.bsesme.com/include/images/redbullet.gifPublic Offering
The Initial Public Offer opens and closes as per schedule. After the closure of IPO, the Company submits the documents as per the checklist to the Exchange for finalization of the basis of allotment.
Description: https://www.bsesme.com/include/images/redbullet.gifPost Listing
BSE finalizes the basis of allotment and issues the Notice regarding Listing and Trading.

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