Now, SME Business Owners in India can raise funds with their IPOs on NSE and BSE!
This is the latest message from the Securities and Exchange Board of India (SEBI), which announced its decisions through its Press Release “PR No.344/2009”.
NSE and BSE will now be allowed to set-up SME trading platform, which would have lighter eligibility norms for companies initiating public offers: Clause 49 still needs to be complied with, and SMEs can prepare and present financial results on a half-yearly basis (instead of the quarterly requirement).
Other exemptions include diluting the profitability track record requirement and Takeover Code regulations.
- Minimum IPO application size: Rs. 1 lakh
- Minimum trading lot: Rs. 1 lakh
- Upper limit for paid up capital for listing on the SME exchange : Rs. 25 crore
- Minimum paid up capital for listing on NSE/ BSE: Rs.10 crore
Read the complete Press Release here.