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BSE relaxes in Eligibility Criteria for SMEs in view of Covid-19 Pandemic Situation (Read Circular)

BSE has issued a circular dated 19th April 2012 whereby they have laid down eligibility criteria for companies seeking listing on BSE SME Platform as well as the guidelines for migration from SME Platform to main platform of BSE Ltd. 

BSE relaxes in Eligibility Criteria for SMEs in view of Covid-19 Pandemic Situation (Read Circular)

BSE has amended the eligibility criteria to strengthen the SME Platform through various circulars. Today MSMEs are facing challenging situations due to the pandemic caused by Covid-19.

In view of the above, the following eligibility criteria for listing on BSE SME platform are relaxed as mentioned below:

Sr.    Criteria Existing Revised Norms
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

All other norms (other than those revised as above) would remain unchanged.  It may be noted that there will be no change in the existing guidelines for NBFC and Broking companies.

It may be noted that there is no change in the existing guidelines for listing on BSESME platform for NBFC and Broking companies.

The above revised criteria would be applicable with effect from June 1, 2020.

Also Read: Refunds amounting to Rs. 26,242 crore issued since 1st April, 2020: CBDT

CLICK HERE TO READ THE FULL TEXT OF CIRCULAR

 

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