NSE has changed the rules for smaller companies that want to move from the SME platform to the main platform.
Now, companies need to have a minimum paid-up equity capital of ₹10 crore, they must be profitable for at least two of the last three years, and they must have been listed on the SME platform for at least three years. The company also needs to have at least 500 public shareholders and the company’s promoters should own at least 20% of the company.
In my opinion, these updated rules set by NSE are significant as they elevate the standards for moving to the main platform. These changes will ensure that only companies that have proven their profitability and stability can enter the main platform. This will benefit investors as it increases the quality of companies listed, enhancing their trust and confidence in their investments.
NSE tryin to save innocent retail investors 