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MIGRATION FROM SME TO MAIN BOARD

Listing Compliances

Migration of SME listed companies to main board means to transfer its listed securities on main board of stock exchanges from SME platform.

Benefits of Migration

  • Shares performance improves after migration, which results increased market cap.
  • Attract small investors and increase participation of Retail Investor.
  • No requirement of Market Maker.
  • Possibility of listing on both Exchanges i.e. BSE and NSE.
  • Change in group of scrip with lower margin deposit.
  • Entrance in the privileged league of main board companies.
  • Increased public reach.
  • No precondition of trading in lots.

Methods of Migration

SME listed companies may migrate to main board by two methods:

  • Voluntarily - when issue capital of company exceeds Rs. 10 crore but below Rs. 25 crore
  • Compulsorily - when issue capital of company exceeds Rs. 25 crore.

Eligibility
  • Paid up equity capital shall be more than Rs. 10 Crore.
  • Paid up equity capital shall be more than Rs. 10 Crore.
  • Market Capitalisation shall be Rs. 25 Crore or more.
  • Clean track record as per SCORES.
  • Market Capitalisation shall be Rs. 25 Crore or more.
  • Clean track record as per SCORES.
  • Should have been listed on BSE SME for at least 2 Years.
  • Company is in compliance with the SME Listing Agreement during the last one year.
  • Company/its directors/promoters have not been debarred by SEBI.
  • Should have been listed on NSE Emerge for at least 2 Years.
  • Should have positive Net Worth.
  • Has not received any winding up petition admitted by the Court/NCLT.

SME stocks performance improves after migration to the main board. Small and medium enterprises (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).

After migration to main board, all provision of listing regulation shall be applicable on such migrated companies mutatis mutandis.

Some companies performance after migration from SME to main board.

S.No Name of Company Market Cap (in Cr.) Increased in Percentage
Before Migration After Migration (as on 27.08.2020)*
1 Akash Infra Projects Ltd. 97.80
(As on 28.05.2019) 		356.89 265%
2 Creative Peripherals and Distribution Limited 37.41
(As on 15.02.2016) 		154.74 314%
3 Bajaj Health Care Ltd. 140.01
(As on 11.10.2019) 		503.67 260%
4 Captain Polyplast Ltd. 58.94
(As on 05.08.2019) 		171.54 191%

*27.08.2020 is the date of article written

Disclaimer

This article herein is made by CCV is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though this article is based on information obtained from public sources believed to be reliable but non independent verification has been made nor its accuracy or completeness guaranteed. CCV makes no representation as to its accuracy

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