Conditions Precedent to Listing
The Issuers on SME platform shall have adhered to conditions precedent to listing as emerging, inter-alia, from
- Securities Contracts (Regulations) Act 1956,
- Companies Act 1956,
- Securities and Exchange Board of India Act 1992,
- Any rules and/or regulations framed under foregoing statutes, as also any circular, clarifications, guidelines issued by the appropriate authority under foregoing statutes.
Eligibility criteria for listing on NSE Emerge Platform
The following criteria should be complied with as on the date of filing the DRHP with NSE as well as when the RHP is filed with RoC and SEBI.
||The Issuer should be a company incorporated under the Companies Act 1956 / 2013 in India.
|Post Issue paid up Capital
||The post issue paid up capital of the company (face value) shall not be more
than Rs. 25 crore.
- Track record of atleast three years of either
i. the applicant seeking listing; or
ii. the promoters****/promoting company, incorporated in or outside India or
iii. Partnership firm and subsequently converted into a Company (not in existence as a Company for three years) and approaches the Exchange for listing.
****Promoters mean one or more persons with minimum 3 years of experience in the same line of business and shall be holding at least 20% of the post issue equity share capital individually or severally
- The company should have positive cash accruals (earnings before depreciation
and tax) from operations for atleast 2 financial years preceding the application
and its net-worth should be positive.
|Other Listing conditions
- The applicant Company has not been referred to Board for Industrial and
Financial Reconstruction (BIFR).
- No petition for winding up is admitted by a Court of competent jurisdiction
against the applicant Company.
- No material regulatory or disciplinary action by a stock exchange or
regulatory authority in the past three years against the applicant company.
||The following matters should be disclosed in the offer document:
- Any material regulatory or disciplinary action by a stock exchange or regulatory
authority in the past one year in respect of promoters/promoting company(ies), group
companies, companies promoted by the promoters/promoting company(ies) of the applicant company.
- Defaults in respect of payment of interest and/or principal to the debenture/bond/fixed deposit holders, banks,
FIs by the applicant, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting
company(ies) during the past three years. An auditor's certificate shall also be provided by the issuer to the exchange, in this regard.
- The applicant, promoters/promoting company(ies), group companies, companies promoted by the
promoters/promoting company(ies) litigation record, the nature of litigation, and status of litigation.
- In respect of the track record of the directors, the status of criminal cases filed or nature of the investigation being
undertaken with regard to alleged commission of any offence by any of its directors and its effect on the business of the
company, where all or any of the directors of issuer have or has been charge-sheeted with serious crimes like murder, rape,
forgery, economic offences etc.