SME exchange listing enables private companies to access equity capital and migrate to the main market subject to eligibility.
Listing on an SME exchange allows private and unlisted companies to raise capital and gain market visibility subject to corporate form, financial eligibility (post-issue paid-up capital, net worth, net tangible assets and track record of distributable profits or alternative net worth tests), mandatory dematerialisation and website requirements, promoter stability, insolvency and winding-up disclosures, and prescribed underwriting, trading lot and capital ceiling rules. Admission requires merchant banker-led due diligence, draft and final prospectus filings, exchange verification and in-principle approval, public offering, allotment and post-issue listing procedures, with migration to the Main Board conditional on minimum SME listing tenure and Main Board criteria. (AI Summary)