direct listing at bse sme
DESCRIPTION
New Direct Listing at BSE SME Norms are introduced by Bombay Stock Exchange. Direct listing at the BSE SME Exchange without complying with the complicated IPO norms is a new ray hope for all the Companies listed at the Regional Exchange and derive the VALUE. It is very beneficial for the companies that are listed on Exchanges, which might for voluntary derecognition or which may be compulsorily derecognized or which may be compulsorily derecognized by SEBI. After expiry of 2 years and subject to main Board Compliances company can get migrated to BSE main Board.TRANSCRIPT
SME – Introduction 2.
Small and medium enterprises ( SMEs ), particularly in developing countries ,are the backbone of the nation’s economy . They constitute the bulk of the industrial base and also contribute significantly to their exports as well as to their Gross Domestic Product (GDP) or Gross National Product (GNP) . Micro, Small and medium Enterprises (MSMEs) contributes 8% of the country’s GDP , 45% of the manufactured output and 40% of our exports . It provides employment to about 6 cr. Enterprises. The Micro Small and Medium Enterprises (MSME) sector forms the largest generator of employment to about 6 cr. People through 2.6cr enterprises . The Micro Small and Medium Enterprises (MSME) sector forms the largest generator of employment in the Indian Economy . It forms a major portion of the Industrial Activity
BSE SME - 3.
BSE SME platform has been developed after studying the salient features, best practices and the business model of similar global existing Exchanges. The listing norms have been extremely simplified and made convenient for SMEs compared to listing norms on the main board. In the past few months, BSE SME has conducted several Seminars for educating the SMEs on the benefits of listing and the preparations required for listing on the BSE SME Platform across India. BSE SME has tied up with channel partners who include various institutions and associations engaged in the development of SMEs.
The exchange has provided an opportunity to small entrepreneurs to raise equity capital for the growth and expansion of SMEs . It is also providing immense opportunity for investors to identify and invest in good SMEs at early stage.
Need for SME Exchange
4.
Provide the SME’s with the
equity financing opportunities Equity Financing
will lower the Debt burden
Expand the investors base
Enhance Company’s
VisibilityIncentive for greater venture
capital participation
Encourage Innovation and Entrepreneurial
spirit
Capital Market will help
distribute risk
Diversification of Resources of
finance
Benefits of Listing at BSE SME Platform 5.
Access to capital and future financing opportunities
Increased visibility and prestige
Venture Capital (VC)
Liquidity for shareholders
Create employee incentive mechanisms
Facilitate growth through Mergers and Acquisitions
Encourages Innovation & Entrepreneurial Spirit
Market Making
6.
Market-making is aimed at infusing liquidity in securities that are not frequently traded on stock exchanges.
Market Maker is Responsible for enhancing the demand supply situation in securities
Not more than 5 market makers for a scrip
Shall be required to provide two way quote for 75% of time in a day , to be monitored by the stock exchange
The minimum depth of the quote shall be Rs. 1 lakh
Eligibility Criteria at BSE SME
7.
Paid up capital
• Minimum of Rs.1 crore
and maximum
up to Rs. 25 crores, as
on the date of making
application for direct
listing.
Networth
• Net worth (excluding
revaluation reserves) of at least Rs. 1 crore as per
the latest audited financial results
Profit making track record
• Distributable profits for
at least 2 out of 3
immediately preceding financial
years
Public Shareholding
• Shall comply with the
requirements of SCRA, SCRR and
Listing Agreement.
Eligibility Criteria at BSE SME ( Cont ) ……
8.
No. of public shareholders
• The Number
of Sharehol
ding should be
50Trading in Compulsory Demat
• Minimum of 50% of
the public
shareholding
should be held in demat form.
Listing track record
• Listed on any
recognized Stock
ExchangeInformation Memorandum
• Information
Memorandum as provided
in Schedule
II of Compani
es Act
Post Listing Compliances
9.
Appointment of Market Maker
• At least one Market
Maker shall be appointed
for a minimum
period of 3 years from the date of listing on
SME platform
Eligibility of Market Maker
• The Market Maker shall hold at least
5% of the issued capital
of the company on the date of
listing of the company on
SME platform
Migration
• A fresh application to migrate to main board after a period of two years from the date of listing on SME Platform
About Us 10.
Corporate Professionals is a group best illustrated for providing widest spectrum of corporate services at one stop. We are recognized as a destination where all paths in hunt for corporate solutions end. Through our strong foundations and robust growth, we have emerged as leading corporate advisors attaining an edge in providing services at internationally competitive standards. Our diversified team of professionals who have attained expertise in delivering supreme corporate services utterly justifies our name, Corporate Professionals.
The group has been involved in delivering services ranging in Corporate Restructuring, Corporate Compliance and Due Diligence, Investment Banking, Securities Laws advisory, Corporate Taxation, Securities Laws Advisory etc. Since the activities are diverse and governed by different regulatory authorities, the businesses are structured under CP with a clear demarcation of infrastructure as well as the human resource in order to offer unsurpassed service in each arena. We differentiate ourselves by the depth and breadth of experience of our senior managers.
Our Assistance in Direct listing
11.
1. Preparation of application for the Listing and other related documents for the Bombay
Stock Exchange including:-
Preparing the detailed Application for the Bombay Stock Exchange, along with all the
Annexure and Certificates.
Preparation of the detailed Profile of the company.
Preparation of the Profiles of the Key Managerial persons , Directors , Promoters of the
company.
Business details of the company.
Preparing the Fact sheet of the Company.
2. Co-ordination with the Regional Exchange .
For the Compliance certificate as on the date of filing of the application with BSE.
For the Capital Confirmation, confirming the number of listed shares at the Regional
exchange.
For obtaining positive recommendation letter from the Regional Stock Exchange.
Our Assistance in Direct listing ( Cont….. )
12.
3. Co-ordination with the BSE for receiving In principal approval for the Listing of the shares.
It includes continuous follow up with the BSE for the case to be included in the Listing
Committee meeting.
4. Preparation of the detailed Information Memorandum of the Company for the submission with
the BSE.
Collecting complete information of the company with respect to:-
1. Company’s Overview
2. Industry Overview
3. Legal Aspects & litigations, as may be relevant
4. Business Prospects- present and future
Collecting information of the Directors.
Collecting information of the holding and subsidiary company.
5. Documentation and Co-ordination with the BSE for the Final trading Permission.
Our Allied Services 13.
Preferential Issue QIB
FEMA Services Valuations
Delisting BSE Listing
ESOP Takeovers
Restructuring Rights Issue
Contact Us
15.
Contact Persons: –
• Ms. Anjali Aggarwal – Asst. Vice President M: +91 9971673336 , D: +91 11 40622230
• Ms. Mohini Varshneya – Sr. Manager M: +91 9971673332, D: +91 11 40622231