With a view to facilitate the necessary provisions needed for SME Exchange, amendments have been made to the SEBI ICDR Regulations and a separate Chapter IX has also been inserted therein. The regulations emphasized on the following :
In order to get listed on SME Exchange, the paid up capital of the issuer company shall be less than or equal to 10 Crore rupees.
The Draft offer document is required to be filed with the Exchange for getting In-Principal approval and thereafter the offer document is required to be filed with SEBI along with due-diligence certificate
Underwriters to the issue under Chapter IX shall ensure that the issue is 100% underwritten and that a disclosure to that effect is made to SEBI.
Minimum application size in an SME IPO is fixed at INR 100,000 per application as opposed to the minimum application
A listed issuer whose post-issue paid-up capital is less than INR 25 Crore has an option to migrate to the SME Exchange, and shall comply with the exchange criteria.
Companies Listed on the SME Exchange whose post issue face value capital is more than Rs.10 Crores and upto Rs. 25 Crores may migrate to Main Board of the Exchange
The lead manager to the issue shall ensure compulsory market-making through the stock brokers of the SME exchanges, appointed by the Company for a minimum period of 3 years from the date of listing of the securities or from the date of migration from the main board as per Regulation 276 of SEBI (ICDR), 2018.
SEBI in order to encourage the promotion of dedicated exchanges and/or dedicated platforms of the exchange for listing and trading of securities issued by Small and Medium Enterprises (“SME”), and in order to facilitate the listing of specified securities in the SME Exchange, has facilitated “Model Listing Agreement”
