NSE Revises Eligibility Criteria For SMEs Eyeing Migration To Main Board

The National Stock Exchange (NSE) on April 24 revised the eligibility criteria for listed small and medium-sized enterprise (SME) companies who intend to migrate from NSE SME platform to NSE main board. The new eligibility criteria will come into effect from May 1, 2025, said the exchange.

Here are the revised eligibility criteria for the migration:

Paid-Up Capital And Market Capitalisation

The company must have at least Rs 10 crore as paid-up equity capital, and average market capitalisation should be more than Rs 100 crore. The average market capitalisation is calculated by taking the average of the weekly high and low of the closing prices of the related shares quoted on the stock exchange for three months preceding the application date.

Revenue And Profitability

The company’s revenue from business operations must be more than Rs 100 crore in the last financial year. It must have earned a positive operating profit in at least two of the last three financial years.

Listing Period

The company must have been listed on the NSE SME platform for at least 3 years.

Public And Promoter Shareholding

The company must have at least 500 public shareholders at the time of applying for migration.

Promoters and their group must hold at least 20 per cent of the company's shares when applying. Also, their holding must not fall below 50 per cent of what they originally held at the time of SME listing.

Other Listing Conditions

• There should be no insolvency or bankruptcy cases against the company or its promoters.

• No winding-up petitions should have been admitted by NCLT or under the IBC.

• The company should have a net worth of at least Rs 75 crore.

• No trading suspensions or major regulatory actions by any stock exchange in the past 3 years.

• The company, its promoters, or subsidiaries must not be debarred by Sebi.

• None of the directors should be disqualified or debarred by any regulator.

• There should be no unresolved investor complaints in the Sebi SCORES system.

• If the company was under any trade restrictions (like trade-to-trade category), at least two months must have passed since those restrictions were lifted.

• The company, its promoters, or subsidiaries must not have defaulted on payments (interest or principal) to debenture holders, bondholders, or fixed deposit investors.