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| BSE SME Exchange, vide its Circular dated 19th April 2012, has issued the basic eligibility Norms for Companies eligible for SME IPOs. The gist of the same is given herein below: |
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Criteria
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Threshold
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- Net Tangible Assets
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At least Rs. 1 crore as per the latest audited financial results.
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- Net Worth (excluding Revaluation Reserves)
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At least Rs. 1 crore as per the latest audited financial results.
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- Track record of distributable profits* in terms of Section 205 of Companies Act, 1956
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At least 2 years out of immediately preceding 3 financial years**. Otherwise, the net worth shall be at least Rs 3 crores
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Important Note:
* Extraordinary income will not be considered for the purpose of calculating distributable profits.
* Each financial year should consist of at least 12 months.
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Criteria
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Threshold
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- Post-issue paid up capital
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At least Rs. 1 crore.
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- Dematerialization of Securities with both the depositories
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Mandatory
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- Maintenance of functional website
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Mandatory
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- Requirement of attending an interview by the Promoters with the Listing Advisory Committee.
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Mandatory
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- Certificate From The Applicant Company / Promoting Companies stating the following:
- The Company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR).
- There is no winding up petition against the company that has been accepted by a court.
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Mandatory
- A Company which is out of BIFR is allowed
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