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Overview

Bombay Stock Exchange (BSE) vide notice no. 20200522-21 dated 22ndMay, 2020hasissued Notification related to "Relaxation in Eligibility Criteria for SMEs in view of Covid-19 Pandemic Situation".

This circular has been issued to amend BSE circular dated 19th April 2012related to eligibility criteria for companies seeking listing on BSE SME Platform as well as the guidelines for migration from SME Platform to the main platform of BSE Ltd.

MSMEs are facing challenging situations due to the pandemic caused by Covid-19, in view of the impact of the COVID-19 pandemic and the lockdown measures undertaken by Central and State Governments.

Applicability: Applicable with effect from June 1, 2020.

Key Highlight:

The following eligibility criteria for listing on BSE SME platform are relaxed as mentioned below:

BSE SME listing eligibility norms revised due to COVID 19
 

Sr.

Criteria

Existing (present Provisions)

Revised Norms (upcoming Provisions)

1

Net Tangible Assets

Rs. 3 crores

Rs. 1.5 crores

2

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 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) from operation and its net worth should be positive

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 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

Important Notes:

· there will be no change in the existing guidelines for NBFC and Broking companies.

· there is no change in the existing guidelines for listing on BSESME platform for NBFC and Broking companies.

· In case of any further clarification you may contact the following Officers:

 

Name of the Officer

Contact No.

Email Id

Anand chari

9820978061

Anand.Chari@bseindia.com

Mukesh Shah

9821627954

mukesh.shah@bseindia.com

 
 

Link: Click Here

Disclaimer: IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.


  

Published by

CS Lalit Rajput
(Company Secretary)
Category Corporate Law   Report

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