Leading stock exchange BSE has allowed broking and microfinance companies to get listed on its small and medium enterprise (SME) platform, a move that will encourage such entities to tap the IPO route.
The new norms will provide these companies easy access to capital, enhanced visibility, growth opportunities and exit route for existing shareholders.
Earlier, such companies were not permitted to list on BSE’s SME platform. Now, the exchange has decided to allow broking companies and microfinance companies to get listed on the SME platform of BSE.
Spelling out listing criteria for broking firms, BSE said these entities should have net tangible assets of at least Rs3 crore in the latest audited financial results. Besides, post issue paid-up capital of the company should be at least Rs3 crore.
The firms are required to have net worth—comprise of equity, reserves and surplus—of minimum Rs15 crore and aggregate profit before tax of Rs5 crore in two consecutive years out of 3 immediate preceding financial years.
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