Three BSE SME listed companies move to main bourse
Updated: Feb 23, 2015 04:53:23pm
Mumbai, Feb 23 (KNN) Bronze Infra-Tech, Anshu's Clothing and SRG Housing are the three companies listed on the BSE SME exchange that have moved to the main bourse after nearly three years when small and medium enterprise (SME) exchanges were introduced. This is the first batch of companies to make this transition.
SME exchange which completes three years in March assists SMEs to raise equity capital for their growth and expansion and thus help them blossom into full-fledged companies and in due time enable them to migrate into the main board of BSE as per the existing rules and regulations which are much relaxed compared to the main exchanges.
Companies considered eligible for migration to the main board are those that have completed two years on the SME platform and have achieved post-issue paid-up capital of Rs 10 crore and above.
The move will act as a motivation for others to make that shift as well and according to merchant bankers, many companies are eager to make the move to the mainboard listing and working towards meeting the requirements.
Companies get benefits of simplified compliance regime and lesser disclosures on SME platform, market-making is facilitated by merchant bankers for a period of three years and lot-sizes for trading in these securities are fixed at a minimum of Rs 1 lakh. Companies are required to announce corporate earnings numbers every half-year on the SME exchange and on their respective websites.
However, companies no longer remain subject to the requirements of market-making and minimum lot size (Rs 1 lakh) on migration. Disclosure requirements are also more exacting and results on the mainboard are declared quarterly. (KNN/SS)
SME exchange which completes three years in March assists SMEs to raise equity capital for their growth and expansion and thus help them blossom into full-fledged companies and in due time enable them to migrate into the main board of BSE as per the existing rules and regulations which are much relaxed compared to the main exchanges.
Companies considered eligible for migration to the main board are those that have completed two years on the SME platform and have achieved post-issue paid-up capital of Rs 10 crore and above.
The move will act as a motivation for others to make that shift as well and according to merchant bankers, many companies are eager to make the move to the mainboard listing and working towards meeting the requirements.
Companies get benefits of simplified compliance regime and lesser disclosures on SME platform, market-making is facilitated by merchant bankers for a period of three years and lot-sizes for trading in these securities are fixed at a minimum of Rs 1 lakh. Companies are required to announce corporate earnings numbers every half-year on the SME exchange and on their respective websites.
However, companies no longer remain subject to the requirements of market-making and minimum lot size (Rs 1 lakh) on migration. Disclosure requirements are also more exacting and results on the mainboard are declared quarterly. (KNN/SS)
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