Friday, April 20, 2012

BSE announces guidelines for SME listing

The Bombay Stock Exchange (BSE) has stipulated eligibility norms for listing on SME Exchange. This exchange was unveiled in March this year. 
 
AS per the circular on BSE SME website, the eligibility rules are - 

1.Net Tangible assets of at least Rs. 1 crore as per the latest audited financial results

2.Net worth (excluding revaluation reserves) of at least Rs. 1 crore as per the latest audited financial results 

3. Track record of distributable profits in terms of sec. 205 of Companies Act, 1956 for at least two years out of immediately preceding three financial years and each financial year has to be a period of at least 12 months. Extraordinary income will not be considered for the purpose of calculating distributable profits. Other wise, the networth shall be at least Rs 3 Crores.

4. Other Requirements
· The company shall mandatorily facilitate trading in demat securities and enter into an agreement with both the depositories.
· Companies shall mandatorily have a website

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