BSE SME Eligibility Criteria
BSE SME Eligibility Criteria
Comprehensive listing requirements based on ICDR Regulations and Exchange norms for the BSE SME Platform.
01. Core Financial Eligibility
Primary financial benchmarks required for BSE SME listing.
Post-Issue Capital
₹25 Cr
Post-issue paid-up capital must not exceed this amount.
Min Net Worth
₹1 Cr
For each of the two preceding full financial years.
Tangible Assets
₹3 Cr
Net tangible assets in the last preceding financial year.
Leverage Ratio
3:1
Total debt to equity ratio should not exceed 3:1 limit.
Company Incorporation & Conversion Note:
Must be incorporated under Companies Act, 2013/1956. For converted entities (Proprietorship/LLP/Partnership), the predecessor must have maintained a net worth of ₹1 Cr for the 2 preceding years.
02. Track Record & Performance
Operational history and earnings requirements.
Operational History
- 1
Minimum 3 years operational track record (including tenure of predecessor entities converted into company).
- 2
Must have completed at least one full financial year of operations after incorporation with audited results.
- 3
Financials must comply with Schedule III of Companies Act, 2013 and be certified by ICAI Peer Review auditor.
Profitability (EBIDT)
The company (or predecessor) must have generated an operating profit (EBIDT) of at least:
₹1.00 Cr+
In 2 of 3 latest years
Positive
In year immediately preceding
Alternative Route
Where the company does not meet the 3-year track record, the project must be appraised and funded by:
- NABARD / SIDBI
- Scheduled Banks
- Financial Institutions
03. Disciplinary Action & Defaults
Mandatory clean-slate requirements for promoters and directors.
Restricted Entities
- No disciplinary action taken by any Stock Exchange against promoters.
- No promoter/director as a 'Wilful Defaulter' or 'Fraudulent Borrower'.
- No classification as a 'Fugitive Economic Offender'.
- No debarment by SEBI from accessing capital markets.
Default Compliance
The company, promoters and subsidiaries must have NO pending defaults in payment of interest or principal to:
Insolvency Status
Must not be referred to NCLT under IBC and no winding-up petition admitted by court.
OFS Restrictions
OFS calculation based on total issue size and pre-issue shareholding.
Use of IPO Proceeds
Whichever is lower of the amount raised.
Total cap on flexible fund usage.
Prohibition
Funds cannot be used for repayment of loans from promoters or related parties.
Special Criteria for Businesses
A. Broking Companies
Path 1: Mid-tier
₹5 Cr NW + ₹5 Cr PBT (2 of 3 years)
Path 2: Large-tier
₹25 Cr Net Worth (3 of 5 years)
Min post-issue capital: ₹3 Cr. Net tangible assets: ₹3 Cr.
B. Micro Finance (MFI)
Minimum AUM
₹100 Crores+
Client Base
10,000+ Active Clients
Must NOT have accepted or held any public deposits.
Additional Compliance Terms
Promoter Contribution: Min 20% (MPC) locked for 3 years; excess released in 2 phases - 50% after Year 1, 50% after Year 2.
Non-Promoter Capital: Subject to 6 months lock-in post allotment.
Demat Form: 100% of promoter holding must be in dematerialised form.
Market Maker: Official appointment mandatory for at least 3 years post-listing.
Underwriting: 100% underwritten issue; Banker min 15% from own account.
Monitoring Agency: Mandatory if issue size exceeds ₹50 Crores.
Name Change: If name changed in last year, 50% revenue must come from activity in new name.
Convertibles: No outstanding convertible securities (excl. ESOPs) allowed at time of filing.
Cooling-Off: 6 months gap required after any withdrawal/rejection of issue.
DRHP Review: 21-day public review mandate with QR code for access.
Fin. Arrangement: Firm resource proof for 75% of project cost (excl. IPO).
Min Allottees
200 Investors
At the time of allotment
Min Application
₹2.00 Lakhs+
Minimum lot size requirement
Public Float
25% Shares
Minimum post-issue shareholding
All Notifications
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