Mumbai: The National Stock Exchange (NSE) has updated its eligibility criteria for companies listed on its SME platform seeking migration to the main board. The new guidelines, released via a circular on April 24, 2025, will be effective starting May 1, 2025. These changes aim to strengthen regulatory compliance, financial viability, and transparency of SMEs aspiring to scale up to the main board.
Key Eligibility Criteria for Main Board Shift
1. Paid-Up Capital & Market Capitalisation
SMEs must have a minimum paid-up equity capital of ₹10 crore. Additionally, the average market capitalisation must exceed ₹100 crore. Market capitalisation will be calculated as the average price over the past three months multiplied by the post-issue number of shares.
2. Financial Performance
A newly introduced requirement mandates that the company must have generated at least ₹100 crore in operational revenue in the previous financial year. Moreover, it must have recorded a positive EBITDA from operations in at least two of the last three financial years.
3. Minimum Listing Tenure
SMEs must be listed on the NSE SME platform for at least three years before applying for migration.
4. Public Shareholding
The required number of public shareholders has been reduced to 500 from the earlier threshold of 1,000.
5. Promoter Holding
Promoters and the Promoter Group must hold a minimum 20% stake at the time of application. Further, at least 50% of the promoter’s shareholding should be retained till the listing date.
Additional Compliance and Regulatory Conditions
Beyond the primary five criteria, NSE has imposed several compliance-related prerequisites:
- No ongoing proceedings under the Insolvency and Bankruptcy Code or winding-up petitions.
- Minimum net worth of Rs 75 crore.
- No regulatory actions, SEBI debarment, or unresolved investor complaints.
- No recent disqualification of directors or surveillance measures like trade-to-trade categorisation within two months.
- No defaults on payment of interest or principal on financial obligations.
Current SME Market Landscape
There are over 365 SMEs currently listed on the NSE. In 2025 alone, 57 new SME IPOs have hit the market, including companies such as Retaggio Industries, Active Infrastructures, and Grand Continent Hotels.
