Migration from SME platform to Main Board of Exchange

The SMEs can migrate to the main board of the exchange subject to fulfilment of some of the conditions. SMEs have seen their stocks performing way better and giving better returns to investors after they migrated to the main board from SME platform of the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Many of these companies have given better returns of 3-200% to the investors as compared to 1-131% while listed on SME platform.

On SME platform minimum Rs. 1.00 lakh investment is needed while in main board there is no such limitation. Overall, all these companies have given very good returns in both platforms. After migration from SME platforms to main board, retail participation in the companies has increased, which helps the performance of SME companies stocks. Moreover, as there is no system in investment in main board against Rs 1 lakh or more investment requirement on SME platforms and this has encouraged and attract small investor towards SME companies. After migration attention of small investors have turned to these companies as they are more in news.

The Stock Exchanges has emanated the migration policy and specified certain criteria for Migration from SME Platform to the Main Board as follows:

Any company on SME Platform having a paid-up capital of more than 10 Crores can apply to move to the Main board provided

  • Market Capitalisation should be minimum Rs. 25 Crores (The Market Capitalization on Weighted Average Price (WAP) of preceding 20 traded days from the date of submission of application to the Exchange for migration from SME platform to the Main board should be equal to or in excess of Rs. 25 crores);
  • A Special resolution is passed in the AGM with at least two-thirds of the shareholders (apart from promoter shareholders) favoring the migration;
  • On migration to the Main Board the company will have to comply with the applicable regulations of SEBI LODR (Listing Obligations and Disclosure Requirements) Regulations 2015;
  • The company/its directors/promoters have not been debarred by SEBI;
  • The applicant should have been listed on SME Platform for atleast 2 Years;
  • No disciplinary action by other stock exchanges and regulatory authorities in past three years. There shall be no material regulatory or disciplinary action by a stock exchange or regulatory authority in the past three years against the applicant company. In respect of promoters/promoting company (ies), group companies, companies promoted by the promoters/promoting company (ies) of the applicant company, there shall be no material regulatory or disciplinary action by a stock exchange or regulatory authority in the past one year.

Certificate to the Exchange in respect of the following
  • The company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR);
  • The networth of the company has not been wiped out by the accumulated losses resulting in a negative networth;
  • The company has not received any winding up petition admitted by a court

We offers the following Services for Migration from SME Platform to the Main Board

  • Acting as a Merchant Banker of the process;
  • Advising and restructuring the capital structure of the company;
  • Assisting in the preparation of Information Memorandum;
  • Assisting in the preparation of the Main Board psting Agreement;
  • Assisting in the In-principal approval, Final Migration and psting approval;
  • Ass isting and advising the process of Migration from SME Platform to the Main Board.
  • Advising and assisting in obtaining the approval from board of director and Shareholder of the company;
  • Drafting and advising on the notice, agendas, resolutions, explanatory statement of board and shareholder of the company;
  • Appoints a person who acts as a scrutinizer for scrutiny of the votes casted electronically or through ballot papers and providing scrutinizer report;