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 NSE Launches SME Platform

NSE SME Launched – Emerge
NSE on 18th September 2012 launched its new platform for small and medium sized companies with high growth potential. The SME platform of NSE would be open for SMEs whose post issue paid up capital is less than or equal to Rs. 25 Cr. The platform shall allow new, early stage ventures and small quality companies to raise much needed growth capital as they grow, mature and transit to NSE’s main board.

NSE SME Platform- Silent Features/ Eligibility Criterion.

1.     The post issue paid up capital of the company (face value) shall not be more than Rs. 25 Cr.
2.     The Company should have a track record of 3 years;
3.     The Company should have Positive Cash accruals from operations for at least 2 years preceding the application with a positive
         net worth;
4.     The issue shall be 100% underwritten;      
5.     The Merchant Bankers should be responsible for market making for a minimum period 3 years, through a stock broker;
6.     The company should not have been referred to BIFR;
7.     No winding up petition should have been filed against the applicant Company;
8.     The Company Should be in compliance with SCRA/SEBI Act/Companies Act      
*The revised guidelines for valuation of shares as prescribed in terms of RBI A.P. (DIR Series) Circular No. 49 dated May 04. 2010, issue price of shares issued to Non Resident Investor shall not be less than the fair valuation of shares by a Chartered Accountant or Category 1 Merchant Banker as per Discounted Cash Flow (DCF)method.

Benefits of Listing at SME Exchange
1.     Better Equity Financing Opportunities & expanded investors base.      
2.     Enhancement of Company’s Visibility & Credibility      
3.     Liquidity to Shareholders      
4.     Relaxed Listing Agreement provisions      
5.     Even a small size Public Issue can be made      
6.     Once the Paid up capital of the Capital of the Company crosses Rs 10 Cr. the Company has the option to migrate to the 
         main Board.     
7.     Less complexities- procedural/time/ cost