♦ Introduction:

> The economic impact of the 2020 coronavirus pandemic in India has been largely disruptive even the strongest economies around the globe are struggling to cope with the situation in the wake of COVID-19 pandemic. All the businesses are severely impacted in such crises as there is difficulty faced by all business for doing transactions and also to raise funds to run their businesses.

> In the wake of such matters Bombay Stock Exchange Limited (BSE LTD.) issued a notice numbered 2020/05/22-21 dated 22nd May, 2020 regarding relaxation given to Companies for listing on its SME platform.

The Companies has been given the following relaxations in eligibility criteria for listing on SME platform of BSE Ltd.:-

Sr. No. Criteria Existing Revised
1. Net Tangible Asset Rs. 3 crores Rs. 1.5 crores
2. Track record The company or the partnership/proprietorship/ LLP firm or the firm which have been converted into the company should have a combined track record of at least 3 years.

Or

In case it is not operational for 3 years then it should have been funded by Banks or financial institutions or Central or state government or the group company should be listed for at least two years either on the main board or SME board of the Exchange.

The company or the firm or the firm which have been converted into the company should have combined positive cash accruals (earnings before depreciation and tax) from operation and its net worth should be positive.

The company or the partnership/proprietorship/ LLP firm or the firm which have been converted into the company should have a combined track record of at least 3 years.

Or

In case it is not operational for 3 years then it should have been funded by Banks or financial institutions or Central or state government or the group company should be listed for at least two years either on the main board or SME board of the Exchange.

The company or the firm or the firm which have been converted into the company should have combined positive cash accruals (earnings before depreciation and tax) in any of the year out of last three years and its net worth should be positive.

> All other criteria issued by BSE Ltd. must be same. The other criteria are mentioned in the following link:-

https://www.bsesme.com/static/getlisted/criteriaisting.aspx?expandable=0

♦ Applicability:-

The above mentioned criteria would be applicable from 1st June, 2020.

♦ Non-Applicability:-

The Above mentioned relaxations shall not be applicable to NBFC and Broking Companies who are seeking to do listing on SME platform of BSE Ltd.

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Details of Authors:

Saurabh Chhatrala and CS Govil Rathi(Authors are associated with Ahemdabad based CS firm GOVIL RATHI & ASSOCIATES)

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Qualification: CS
Company: GOVIL RATHI & ASSOCIATES
Location: AHMEDABAD, Gujarat, IN
Member Since: 04 Mar 2020 | Total Posts: 6
CS Govil Rathi is Member of Institute of Companies Secretaries of India having terrific experience in legal and secretarial matters. He is Young, dynamic, Enthusiastic, self-motivated and optimistic practicing Company secretary having rich professional experience in Company law matters and other com View Full Profile

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