Know what changes NSE has made in its rules after SME listing
by ShivamNainiwal on September 04
NSE (National Stock Exchange) has made some changes in its rules for SME (Small and Medium Enterprises) listing. These changes have been made especially for SME companies to simplify the listing process and provide better protection to investors. These changes will prove to be important for investors. National Stock Exchange has implemented new eligibility rules for listing of small and medium enterprises (SME). NSE said in a circular issued on December 20, SMEs who want to list their securities on the NSE platform will have to complete all the necessary work as per the recent amendments approved by SEBI in its 208th board meeting.
Some of the main changes are as follows
1. Improvement in eligibility criteria for listing
NSE has simplified and clarified the listing criteria for SME companies. Companies now need a shareholding capital of at least Rs 1 crore and a track record of 3 years for listing. This will let the share buyer know the strength of the company background.
2. Minimum public shareholding
SME companies have been given a fixed time limit to increase their public shareholding. SME companies can increase their shareholding only up to a fixed time limit. This time limit companies will have to achieve at least 25% public shareholding within 3 years.
3. Easy disclosure requirements
NSE has demanded more transparency in financial reporting from SME companies. The financial position of the company can be estimated. And companies will have to give more clear information about their financial position and functioning.
4. Security measures for investors
To give better protection to investors, NSE has implemented strict rules so that companies can avoid any kind of fraud or illegal activities. In this, KYC and other certification processes have been strengthened.
5. Online listing process
Offline listing of SME companies has been stopped and online listing has been started. Due to which investors can buy the shares of the company immediately. And due to which the process of application and approval has become fast and transparent.
These changes are aimed at strengthening investor confidence in the SME sector and providing a strong platform for companies to raise capital. ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip ex ea commodo consequat.
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