BSE allows Broking Cos and Micro Finance Cos to get listed with SME exchange with certain criteria

Mumbai, May 2 (KNN) The SME platform of BSE has now allowed Broking Companies and Micro Finance Companies to get listed with the exchange provided they meet certain criteria.

BSE on September 8, 2015 had amended the guidelines of SME platform whereby Stock/ Commodity Broking and NBFC companies were made ineligible for listing on BSE SME Platform.

But now, BSE said, “It has now been decided to allow Broking Companies and Micro Finance Companies to get listed on the SME Platform of BSE” provided they meet the certain criteria.

The  Broking Companies should have net worth of minimum Rs. 15 crores (net worth will comprise of equity and reserves and surplus).

There should be an aggregate Profit before tax of Rs. 5 crores in 2 consecutive years out of 3 immediately preceding financial years. The financial year should be of a period of 12 months. Extraordinary income will not be considered for the purpose of profits.

They should have the Net Tangible assets of at least Rs. 3 crores as per the latest audited financial results and the post issue paid up capital of the company should be minimum Rs.3 crores.

For micro finance companies, in addition to the existing criteria for all SME companies, the company shall have a book value of at least Rs. 100 crores and with a client base of 10000 and above and it should not have accepted/ hold public deposit. (KNN Bureau)