SEBI Guidelines for SME IPO
- Maximum Post Issue capital - Rs.25 crores
- Minimum no. of members for Issue - 50
- Market making - Mandatory for 3 years
- Underwriting - 100% (Merchant Bankers to underwrite 15% in own account)
- Issue Lot size - No. of shares depending on IPO price band
- Trading Lot size - Multiples of Rs.100,000/-
- After listing, no minimum number of members required to be continued
SEBI had granted the approval to Bombay Stock Exchange Ltd. for setting up the 'SME Exchange / Platform'.
In addition to the various Guidelines issued by SEBI from time-to-time, the BSE SME Exchange has stipulated the following eligibility Norms for Listing on SME Exchange / Platform and migration norms from BSE SME to main board of BSE.
- Net Tangible assets of at least Rs. 1 crore as per the latest audited financial results.
- Net worth (excluding revaluation reserves) of at least Rs. 1 crore as per the latest audited financial results.
- Track record of distributable profits in terms of sec. 205 of Companies Act, 1956 for at least two years out of immediately preceding three financial years and each financial year has to be a period of at least 12 months. Extraordinary income will not be considered for the purpose of calculating distributable profits. Otherwise, the networth shall be at least Rs. 3 Crores.
- Other Requirements:
The post-issue paid up capital of the Company shall be at least Rs. 1 crores. The Company shall mandatorily facilitate trading in demat securities and enter into an agreement with both the depositories. Companies shall mandatorily have a website.
- Certificate from the applicant Company / promoting Companies stating the following:
The Company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR).
Note: Cases where Company is out of BIFR are allowed. There is no winding up petition against the Company that has been accepted by a court.
- Listing Process will also involve:
For listing on BSE SME platform promoters will mandatorily be required to attend an interview with the Listing Advisory Committee.