BSE strengthens direct listing of companies listed on other exchange(s)
FinTech BizNews Service
Mumbai, August 11, 2025: As a responsible market infrastructure institution (MII) and a front-line regulator, BSE continues to strengthen its regulatory framework to enhance market integrity, investor confidence and economic growth. In line with this ethos, BSE has further strengthened the eligibility norms for both SME companies seeking migration to Main Board and for companies listed on other recognized stock exchanges seeking direct listing. The move is aimed at promoting transparency, disclosure and thereby improve the quality of listings.
Sundararaman Ramamurthy, MD & CEO, BSE
As part of change, for migration of SME/direct listing on Mainboard, the exchange has enhanced the requirement of operating profitability to Rs 15 crores for last 3 financial years with minimum operating profit of Rs 10 crores in each of these financial years; as against the previous criteria of positive operating profit for at least 2 out of 3 financial years. Similarly, the minimum number public shareholders have been increased from 250 to 1000.
The exchange has further mandated market liquidity criteria wherein entity seeking to be on Mainboard through migration/direct listing should have during past six months (a) witnessed trading of at least 5% of the weighted average number of equity shares listed (b) been trading on at least 80% of days during such 6 months period. Furthermore, companies are also required to have net tangible assets of at least Rs 3 crores in each of the last 3 financial years and should have compliance track record for 3 years.
Direct Listing is a process through which a company which is already listed on other stock exchange/s approaches BSE for listing of its equity shares. The companies fulfilling the eligibility criteria prescribed by the Exchange; from time to time; are listed on the Exchange.
Presently at BSE, Direct Listing is broadly divided into three categories
Over 600 listings
India’s premier small and medium enterprises (SME) listing platform, the BSE SME platform has revently crossed the milestone of 600 listings. Overall money raised by these companies since inception stands at Rs 10,652 crores with an overall market capitalisation of Rs 1,84,574 crores. This listing falls in line with the overall objective of the exchange to present a vibrant ecosystem to all segments of the capital market including SMEs. Not only has the platform crossed the milestone but it has grown in strength to strength in recent years, raising more money with higher issue sizes.
In the period since January 2023 till date, the average issue size for SME IPOs on the platform have gone up to Rs 32 crores, versus Rs 11 crores in the period March 13, 2012, to December 31, 2022. Further, the funds raised too has gone up to Rs 6,109 crores in the period since January 2023 till date, versus Rs 4,544 crores in the period March 13, 2012, to December 31, 2022. These bigger and bolder moves by the SMEs on the platform is also getting reinforced by their movement to the mainboard, with nearly 1/3rd of the overall companies making that transition.
The SMEs listing on the platform also represents the economic opportunity present across the country. SMEs listed on the BSE SME platform have a pan-India presence as well as representation of various industries and segments of the country making it a holistic picture of the economic growth of the economy.
Reflecting on this remarkable journey, Sundararaman Ramamurthy, MD & CEO, BSE Ltd., said, " With over 7 crore SMEs, 30% share in GDP, 44% of share in exports and nearly 60% share in employment, MSMES presents an unparalleled economic opportunity to achieve Viksit Bharat by 2047. BSE SME platform not only underscores the immense trust entrepreneurs and investors place in us but also our commitment to supporting this ecosystem and fostering an environment where Indian entrepreneurs can thrive”.
To aid the ecosystem, BSE SME platform recently launched a generative artificial intelligence (AI) tool to vet SME IPO documents before they can be formally filed with the exchange. Not only does this system improves the validation process of the document filing but also improves the efficacy and timelines in the listing process.
Radha Kirthivasan, Head of Listing & SME Platform, added, "Our steady and consistent growth along with the technological appendages that are being developed demonstrates the overall resolve of the exchange and platform to accelerate ambition of budding entrepreneurs. By leveraging digital tools, the platform aims to enhance this vibrant ecosystem, contributing to India’s socio-economic progress.”
