NSE revises criteria for listed SME companies to shift to main board

On April 24, the National Stock Exchange (NSE) revised the eligibility criteria for small and medium-sized enterprise (SME) companies wishing to transition to the main board. According to the updated criteria, SME companies must have been listed on the SME platform of the exchange for at least three years.

To qualify for main board listing, these small companies must have a paid-up capital of at least Rs 10 crore. Additionally, the promoter and promoter group must hold at least 20% of the company's shares at the time of applying.

Furthermore, at the time of the migration application, the promoter's shareholding should not be less than 50% of the shares held on the listing date. The company must also demonstrate revenue from operations exceeding Rs 100 crore in the last financial year and must have achieved positive operating profits for at least two out of the last three financial years. The total number of public shareholders must be no fewer than 500 on the date of the application.

Here are the additional conditions:

- No proceedings have been admitted under the Insolvency and Bankruptcy Code against the applicant company or its promoters.
- The company has not received any winding-up petitions admitted by the National Company Law Tribunal (NCLT) or under the IBC.
- The net worth of the company must be at least Rs 75 crore.
- There have been no material regulatory actions against the applicant company or its promoters in the past three years, such as trading suspension by any exchange.
- The company and its promoters must not have been debarred by the Securities and Exchange Board of India (SEBI), and no director of the company should be disqualified or debarred by any regulatory authority.
- The applicant company must have no pending investor complaints in the SEBI Complaints Redress System (SCORES).plaints in SCORES.​