The eligibility criteria for migration of SME-listed companies to the Main Board and for companies seeking direct listing on the Main Board have been revised with effect from August 11, 2025. Below is a comparison of the earlier and revised norms keeping the paid-up share capital and past track record of listing unchanged:
| Criteria | Old Policy (Earlier Norms) | New Migration Policy (Updated Norms) | Change / New Addition |
|---|---|---|---|
| Market Capitalisation | Minimum ₹25 Cr (3-month average) | For Migration – ₹100 Cr average (6-month average) For Direct Listing – ₹1000 Cr (6-month average) | Increased thresholdand changed calculation period from 3 months to 6 months |
| Market Liquidity | Not specified | Min. 5% of weighted average shares traded in 6 months, Trading on atleast 80% of market days, Minimum daily turnover of ₹ 5 lacs and avg. daily turnover ₹10 lacs over 6 months period, 50 avg. daily trades and minimum 25 trades over 6 months period | Entirely new requirement |
| Operating Profit (EBITDA) | Positive in 2 of last 3 years + positive PAT in immediate last year | Avg. ₹15 Cr in each of last 3 years & min. ₹10 Cr in each of the 3 years | Much stricter – now higher amounts and consistent profits needed |
| Net Worth | Atleast ₹15 Cr for 2 years | Atleast ₹1 Cr for each of last 3 years | Relaxed requirement for net worth amount but for 3 years |
| Net Tangible Assets | Not separately specified | At least ₹3 Cr for 3 years, not more than 50% in monetary assets unless used for business | New parameter |
| Promoter Holding | At least 20% | Same 20% (can include promoter group holding for shortfall) | Minor relaxation (can count promoter group holding) |
| Regulatory Actions | No material regulatory action, no SEBI debarment, no winding-up petition | Expanded list: no SEBI debarment, not a wilful defaulter/fraudulent borrower, not fugitive economic offender, no IBC admis sion, no trading suspension in last 12 months | More detailed and stricter |
| Compliance with LODR | Not mentioned | 3-year track record, no pending non-compliance | New requirement |
| Public Shareholders | Minimum 250 | Minimum 1,000 | Increased requirement |
| Other Parameters | No IBC proceedings, no defaults on bonds/FDs, CRA certificate for fund utilisation, no pending in vestor complaints, 2 month cooling off after T2T/surveillance | Same but added: must not be under sur veillance categories (ASM, GSM, ESM, T to T) at application time | Expanded surveillance compliance |
| SCORES Complaints | Not mentioned | No pending investor complaints on SEBI SCORES system | New requirement |
| Business Consistency | Not mentioned | Same line of business for 3 years, at least 50% revenue from it | New requirement |
| Audit Qualifications | Not mentioned | No audit qualification on going concern / material financial issues at application time | New requirement |
Conclusion:
The new BSE norms aim to ensure that only SME companies with strong governance practices and sound fi
nancial performance migrate to the main board or opt for direct listing, thereby enhancing credibility, improv
ing the quality of listings and strengthening investor protection.
Relevant Links : https://www.bsesme.com/static/getlisted/Migration_from_SME_Exchange_to_Main_Board.aspx
