Sebi norms for SME bourse


Briefing reporters, Chairman C B Bhave ruled out a separate exchange for them. “It doesn’t have to be separate exchange (for SMEs),” said he adding it could be on the existing exchanges.  He also announced some changes regarding SMEs and said they can now declare their results every half year as against every quarter for others.
Bhave said upper limit of paid-up capital of SME would be capped at Rs 25 crore, while minimum paid-capital at Rs 10 crore to be eligible for listing on the main boards of NSE and BSE. 

He said companies listed on SME exchanges would be exempted from eligibility norms applicable for IPOs and FPOs prescribed in the Sebi regulations, but they would be required to ensure their issues to be fully underwritten.  However, only a minimum percentage (15 per cent) of issue size will be mandated to be compulsorily underwritten by the merchant banker itself. The offer document will have to be filed with Sebi and the exchange.  No observations would be issued by Sebi on offer documents filed by the merchant bankers (MBs).  A minimum number of investors (say 50) shall be specified for IPO only.
Fast track issues

Sebi, while relaxing certain requirement of fast track issues (FTIs) said minimum market capitalisation required by listed firms seeking to sell shares in follow-on public offerings (FPOs) has been halved to Rs 5,000 crore from Rs 10,000 crore, while pegging annualised trading turnover to free float companies whose public shareholding is less than Rs 15 per cent of the issued capital.  “This applies to all listed companies.”
Furthermore, Sebi board also amended ICDR Regulations and Listing Agreement to accord QIB status to insurance funds set up by armed forces such as Army Group Insurance Fund.  

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