Step 2 F:- SME Exchange

So here is good news, Now the capital market is not reserved for big boys, Now small also can take part in it
SME Exchange is a new platform provided to small & Medium Enterprises to provide access to the primary market. While this is a noble initiative to get finance to many enterprises which are lagging behind due to non-availability of primary market access it will also provide access to the common public the investment opportunity in businesses which have the capacity to be big in future


Who are Eligible as SME?

In India, “SME Exchange” is defined in Chapter XB of the Securities and Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations as a trading platform of a recognized stock exchange or a dedicated exchange permitted by SEBI to list the securities issued in accordance with Chapter XA of SEBI (ICDR) Regulations and this excludes the Main Board (which is, in turn, is defined as a recognized stock exchange having nationwide trading terminals, other than SME exchange)
To be listed on the SME exchange, the post-issue paid-up capital of the company should not exceed Rs. 25 Crores. This means that the SME exchange is not limited to the Small and Medium Scale enterprises which are defined under [1] The Micro, Small And Medium Enterprises Development Act, 2006 as enterprises where the investment in plant and machinery does not exceed Rs. 10 crores. As of now, to get listed in the main boards like National Stock Exchange, the minimum paid-up capital required is Rs. 10 cr and that of Bombay Stock Exchange is Rs. 3 cr. Hence, those companies with paid-up capital between Rs. 10 cr to Rs. 25 cr has the option of migrating to the Main Board / or to SME exchange. The companies listed on the SME exchange are allowed to migrate to the Main Board as and when they meet the listing requirements of the Main Board and there shall be compulsory migration of the SMEs from the SME exchange, in case the post issue paid-up capital is likely to go beyond Rs 25 crore limit.

Benefits of SME Listing

  • To Companies
  • Easy access to long term capital
  • Less compliance as compared to IPO listing
  • Listing Cost is much lesser than IPO listing cost
  • Increased visibility & Prestige
  • Liquidity for investors

Services Provided by AKT Associates

  • Advisory on pre incorporations aspects
  • Documents and compliance assistance
  • Post incorporations services
  • Selection and appointment of Merchant Bankers
  • Preparing Offer documents for IPO
  • Restructuring of Capital & Valuation