Mumbai, Dec 3 (KNN) The SME exchange of BSE has come out with additional guidelines for migration from BSE SME Platform to the Main Board of BSE.

BSE, in 2012, had laid down the eligibility norms for the company desiring to get listed on its SME Platform and also the guidelines for migration from SME Platform to the Main Board of BSE.

In order to strengthen the same, the exchange has come out with additional guidelines relevant to migration from SME Platform to the Main Board of BSE.

In a circular, BSE SME said, “Where there is any SEBI debarment order against the company/its promoters/directors, such company will not be eligible to migrate from SME to Main Board of BSE till such SEBI debarment order is in force.”

Accordingly, companies that are seeking migration from the SME Board to the Main Board, would be required to submit an undertaking that the company / its promoters / directors have not been debarred by SEBI.

Where a company has been debarred from accessing the securities market, it cannot raise any funds. However, bonus issues (not amounting to raising of funds from public) would be permitted to such extent as to NOT increase the post issue capital to beyond Rs.25 crores, said BSE SME.

However, where the Directors/Promoters of the company are debarred from accessing the securities market, then the company would be allowed to increase its capital to such extent as to NOT increase the post issue capital to beyond Rs.25 crores. It is further clarified that the debarred entities would not be eligible to participate in any such further issue of capital.

While the SEBI debarment is in force against the company/its promoters/directors, it shall be mandatory for the company to appoint a trading member of BSE as a market maker even after the completion of mandatory period of three years. In case of any default during market making the penalties/actions will be imposed as per the existing guidelines, the BSE SME guidelines states.

BSE SME currently has 161 companies listed with it out of which 18 companies have migrated to the main board BSE. (KNN Bureau)