NSE Comes Up With New Migration Policy For SMEs To Shift To Main Board According to the notification, the new framework will be implemented on the companies who seek to migrate from NSE's small and medium enterprise (SME) platform to the main board

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Twitter

National Stock Exchange NSE on Thursday came out with a new framework for companies seeking to migrate from its small and medium enterprises (SME) platform to the main board, requiring the net worth of such firms be at least INR 50 crore and should have at least 1,000 public shareholders during certain period, notified NSE in its new migration framework for companies.

According to the notification, the new framework will be implemented on the companies who seek to migrate from NSE's small and medium enterprise (SME) platform to the main board. For shifting to the main-board applicant should have been listed on the SME platform of the exchange for at least 3 years and the total number of public shareholders on the last day of the preceding quarter from the date of application should be at least 1,000.

It further noted that other than setting a minimum number of public shareholders, the bourse has also made it mandatory for the applicant company to have positive cash accruals (earnings, before interest, depreciation, and Tax). The company should have to maintain the threshold number of public shareholders on the last day of the preceding quarter from the date of application.

Furthermore, it is notified that 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.

In addition to that, the company should not receive any winding-up petition admitted by the NCLT. The framework also notifies the minimum paid-up equity capital of the applicant company, which needs to be at least INR 10 crore. The capitalisation of the applicant company's equity should not be less than INR 25 crore.

Moreover, it is mandatory for the applicant company to disclose all material litigation and regulatory action to the stock exchanges where its shares are listed in an adequate and timely manner.

NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business News

'Nobody Ever Gave Me Anything': More Boomers Say They're Not Transferring Wealth to Family Until They're Dead

A new survey from Charles Schwab found boomers are more hesitant to distribute their wealth than other generations.

Leadership

How a Mindfulness Practice Can Help You Beat Tech Overwhelm

This article explores how mindfulness can transform your tech choices, ensuring technology serves your business goals without adding unnecessary complexity.

Business News

Instagram Is Offering TikTok Creators Up to $50,000 Per Month For Exclusive Content

Leaked deals show that there are strict terms to receiving the money.

Thought Leaders

10 Things I Wish I Knew Before I Took My Company Public

What I wish I would have known through the many turmoils of experience that lead to necessary wisdoms for company survival.

Business News

Here's How Much 8 CEOs Made in 2024, From JPMorgan's Jamie Dimon to Disney's Bob Iger

CEO pay is on the rise, with some making tens of millions more in 2024 than they did in 2023.