Setting up of a Stock exchange/ a trading platform by a recognized stock exchange having nationwide trading terminals for SME
Summary
This SEBI circular outlines the regulatory framework for the establishment and supervision of SME stock exchanges or trading platforms. It details specific eligibility criteria for entities seeking recognition, including capital requirements and infrastructure standards. The document also summarizes key amendments to existing regulations governing the issuance, listing, and trading of securities by small and medium enterprises.
Text
An issuer whose post -issue face value capital does not exceed ten crore rupees shall make Initial Public Offer of specified securities in terms of Chapter XA of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (ICDR Regulations).
An issuer listed on a SME exchange and whose post- issue face value capital pursuant to further issue of capital does not exceed ten crore rupees shall make further issue of specified securities in terms of Chapter XA of the ICDR Regulations.
An issuer having post -issue face value capital between ten crore rupees and twenty five crore rupees may make Initial Public Offer and further issue of specified securities in terms of Chapter XA of the ICDR Regulations.
An issuer making issue of specified securities in terms of Chapter XA of the ICDR Regulations shall be required to list its entire specified securities on the SME exchange.
An issuer making issue of specified securities in terms of Chapter XA of the ICDR Regulations shall be exempted from the eligibility requirements as laid down under regulations 25, 26 and 27 of the ICDR Regulations.
An issuer with post issue face value capital between Rs 10 crore and Rs 25 crore listed on SME exchange can migrate to Main Board... provided they meet the listing requirements... and have obtained the shareholders approval...
An issuer listed on SME exchange proposing to issue further capital pursuant to which their post -issue face value capital may increase beyond Rs. 25 crore shall migrate to the main board, subject to obtaining in-principle approval...
An issuer... shall file the offer document with SEBI and SME exchange... through the merchant banker. No observations would be issued by SEBI on the offer documents filed by the Merchant Banker/s.
The issue made in terms of Chapter XA of the ICDR Regulations shall be 100% underwritten and the merchant banker/s shall underwrite 15% in their own account.
The merchant banker to the issue will undertake market making through a stock broker... responsible for market making for a minimum period of three years from the date of listing...
During the compulsory market making period, the promoters holding shall not be eligible for offering to market makers... buyer of shares from the promoters... shall not be eligible to offer such shares to market makers.
Merchant Banker/s who have the responsibility of market making may, at their option, be represented on the board of the issuer subject to agreement with the issuer in this regard.
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Source: SecMarx — Setting up of a Stock exchange/ a trading platform by a recognized stock exchange having nationwide trading terminals for SME. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.