BSE tightens norms for SME migration, direct listings

The minimum number of public shareholders required has also been increased from 250 to 1,000
| Photo Credit:
FRANCIS MASCARENHAS

The BSE has strengthened its rules for small and medium enterprises (SMEs) moving to the mainboard and for companies listed on other exchanges seeking direct listing. The changes aim to improve transparency, disclosures and the overall quality of listings.

Under the new norms, companies must now report operating profits of at least ₹15 crore over the last three financial years, with a minimum of ₹10 crore in each year. This replaces the earlier rule that required a positive operating profit in at least two of the past three years.

The minimum number of public shareholders required has also been increased from 250 to 1,000.

To ensure sufficient market activity, companies must meet liquidity criteria over the past six months before listing. This includes trading in at least 5 per cent of the weighted average number of equity shares and being traded on at least 80 per cent of the trading days in that period.

Additionally, applicants must have net tangible assets of at least ₹3 crore in each of the last three years and a clean compliance track record for the same period.

This comes over three months after the National Stock Exchange (NSE) tightened its rules for migration to its mainboard.

BSE said the move is part of its role as a responsible market infrastructure institution to safeguard market integrity, boost investor confidence and support economic growth.

The current combined market cap of 405 companies trading on the BSE SME platform is ₹75,000 crore. Out of the 600 listed on BSE’s SME platform, around 200 companies have migrated to the mainboard.

Published on August 11, 2025