A good news from BSE for all the Companies that were intending to go for Direct Listing, but were finding themselves unable to do so because of tight Direct Listing norms.
BSE, has, w.e.f 17th Match 2017 relaxed its Direct Listing norms. Now, for any applications to be made after this date, the major Direct Listing requirements are as under:
| Paid up Capital | Minimum issued, Fully paid up and listed equity capital of Rs.3 crores. |
| Networth | At least Rs.3 crore as per the latest audited financials as on date of application. |
| Profit track record | Net Profit Before Tax (NPBT) greater than or equal to Rs. 1 crore cumulative for 3 previous financial years of the entity that has applied for Direct Listing. Even Current year NPBT may be considered based on certificate from Statutory Auditor with atleast six months of operations. |
| No of shareholders | Minimum 100 public shareholders |
| Reference under the Insolvency and Bankruptcy Code |
At the time of filing the Direct Listing application, neither any proceeding is pending against the Company under the Insolvency and Bankruptcy Code, 2016 nor has winding up proceeding been commenced against the Company under any other laws |
| Promoter’s Holding | Minimum 25%, with entire holding to be in Demat mode |
| Lock in of Promoter Holding | Entire promoter shareholding to be kept under lock in for a period of 3 years from date of listing at BSE |
The above relaxations have come at the nick of the time, when the last date for submitting the Action Plan is about to lapse on 31st Match 2017. These relaxed norms will assist many a distressed RSE companies in providing the not available liquidity to the public shareholders of these companies, thereby paving way ahead for improving the equity cult and strengthening the public confidence.