NSE revised policy for migration from NSE SME to main board

NSE came out with detailed policy to enable migration of companies listed on NSE SME platform to the main board of NSE. The highlights are as below:

1. Paid up Capital & Market Capitalisation: The paid-up equity capital of the applicant shall not be less than 10 crores and the capitalisation of the applicant’s equity shall not be less than 25 crores. For this purpose capitalisation will be the product of the price (average of the weekly high and low of the closing prices of the related shares quoted on the stock exchange during 3 months preceding the application date) and the post issue number of equity shares
2. Earnings before Interest, Depreciation and Tax (EBITDA) and Profit After Tax (PAT): 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.
3. Listing period: The applicant should have been listed on SME platform of the Exchange for at least 3 years.
4. Other Listing conditions: (i) The applicant Company has not referred to the Board of Industrial & Financial Reconstruction (BIFR) &/OR No proceedings have been admitted under Insolvency and Bankruptcy Code against the issuer and Promoting companies, (ii) The company has not received any winding up petition admitted by a NCLT, (iii) The networth of the company should be at least 50 crores. Net Worth – as defined under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
5. Public Shareholders: Total number of public shareholders on the last day of preceding quarter from date of application should be at least 1000.
6. The applicant desirous of listing its securities on the main board of the Exchange should also satisfy the Exchange on the following: (i) The Company should have made disclosures for all material Litigation(s) / dispute(s) / regulatory action(s) to the stock exchanges where its shares are listed in adequate and timely manner, (ii) Cooling period of two months from the date the security has come out of trade-to-trade category or any other surveillance action, by other exchanges where the security has been actively listed, (iii) Redressal mechanism of Investor grievance, (iv) PAN and DIN no. of Director(s) of the Company, (v) Change in Control of a Company/Utilisation of funds raised from public

The Exchange reserves the right to reject application on any of the following grounds: 1. The Applicant does not conform to the eligibility requirements set out herein. 2. The application is not complete in all respects and/or does not conform to the requirements set out herein. 3. The application does not contain such additional information as may be required by NSE; and/or 4. The application is false and/or misleading in any manner. 5. Any other reason as NSE may deem fit.