| NSE Launches SME Platform
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| NSE SME Launched – Emerge |
| NSE on 18th September 2012 launched its new platform for small and medium sized companies with high growth potential. The SME platform of NSE would be open for SMEs whose post issue paid up capital is less than or equal to Rs. 25 Cr. The platform shall allow new, early stage ventures and small quality companies to raise much needed growth capital as they grow, mature and transit to NSE’s main board.
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| NSE SME Platform – Silent Features/Eligibility Criterion |
- The post issue paid up capital of the company (face value) shall not be more than Rs. 25 Cr
- The Company should have a track record of 3 years;
- The Company should have Positive Cash accruals from operations for at least 2 years preceding the application with a positive net worth;
- The issue shall be 100% underwritten;
- The Merchant Bankers should be responsible for market making for a minimum period of 3 years, through a stock broker;
- The company should not have been referred to BIFR;
- No winding up petition should have been filed against the applicant Company;
- The Company should be in compliance with SCRA/ SEBI Act/ Companies Act
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| Benefits of Listing at SME Exchange |
- Better Equity Financing Opportunities & expanded investors base `
- Liquidity to Shareholders
- Relaxed Listing Agreement provisions
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- Even a small size Public Issue can be made
- Once the Paid up capital of the Capital of the Company crosses Rs 10 Cr, the Company has the option to migrate to the main Board.
- Less complexities-procedural/ time/ cost
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| MCA Updates
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| Delegation of powers of Central Government to Regional Director |
| Notification S.O. 1539 (E) dated July 10, 2012 issued by Ministry of Corporate Affairs had the delegated the authority under sections 17, 18, 19, 141 and 188 of Companies Act, 1956 to concerned Regional Directors, w.e.f. August 12, 2012. In the same reference, the Ministry vide another Notification dated August 30, 2012 has informed that applications/petitions and any objections received w.r.t aforesaid sections will be transferred/forwarded by the concerned Company Law Board(CLB) to the concerned Regional Directors(RD). Moreover, no further fees is required to be paid to Regional Directors, as a result of transfer of petition from CLB to RD, if the same has already been paid at the time of filing petition/application.
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| Conditions for conversion of Multi-State Society into producer Companies |
Ministry of Corporate Affairs vide their General Circular No. 29/2012 dated September 10, 2012 has prescribed certain conditions on Multi-State Society, while seeking conversion into producer Companies under Section 581 J(5) of Part-IX A Companies Act, 1956. The conditions are as follows:
- A written consent by the Multi-State Society shall be furnished to the respective Registrar of Companies from the local Cooperative Department of the State in which the Society is registered, to the effect that†The society desirous of being converted has no dues payable to the State at the time of conversion and that the Department has no objection to its being converted into a producer company under Companies Act, 1956.
- Further, the Registrar of Companies have been advised to make sure that the applicant Multi-State Society has extended its activities outside the State, in which the society is registered, under the respective local/State level law governing respective cooperative societies.
- Any clarification or guidance in this context may be addressed to the Ministry of Corporate Affairs.
- The Circular is effective from September 10, 2012.
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