Securities and Exchange Board of India (Sebi) today announced conditions for listing on the SME (small and medium enterprise) exchange, reports Biz2Credit. As part of the plan a model SME equity listing agreement for the purpose was also announced.
SEBI stated that the SMEs need not send full annual report to investors and can submit half-yearly financial results in place of quarterly results. It will also allow SMEs to put their financial results on website and do away with publishing the same.
In November 2009, Sebi had allowed existing stock exchanges to set up a separate trading platform and relaxed the criteria for their listings. As per Sebi norms, only those company’s whose paid-up equity was maximum Rs 25 crore were eligible to list here. If the paid-up capital of a company rises above Rs 25 crore after the issue, they will not be eligible for using the SME platform.Sebi had also mandated that the companies will have to come out with issues with a minimum size of Rs one lakh.
