Conditions of listing for issuers seeking listing on SME Exchange - Model SME Equity Listing Agreement

CIR/CFD/DIL/6/2010 · 2010-05-17 · SEBI

Summary

This circular mandates the execution of a Model SME Equity Listing Agreement between issuers and Stock Exchanges for listing securities on SME platforms. It outlines specific relaxations for SMEs regarding annual reports, financial result submission frequency, and publication methods compared to Main Board requirements. The agreement establishes covenants for issuers concerning the issuance of allotment letters, share certificates, and related documentation. The Issuer agrees to split, consolidate, and renew share certificates into market units as required by the Stock Exchange. Procedures are established for handling unclaimed shares in escrow, including crediting them to a demat suspense account and freezing voting rights. The Issuer commits to registering transfers promptly without charging excessive fees, subject to specific verification and statutory conditions. This section details the Issuer's obligations regarding compensation for transfer delays, arbitration of disputes, and provision of accrued benefits. It mandates prompt notification to the Stock Exchange regarding prohibitory orders and specifies requirements for maintaining transfer registers or registry offices. Furt

Text

The full text of “Model Equity Listing Agreement – for SME Exchange” is given at Annexure A. This agreement shall be executed for listing of specified securities issued or migrated on SME exchange, in terms of Chapter XA of the SEBI (ICDR) Regulations.

Companies listed on the SME exchange may send to their shareholders, a statement containing the salient features of all the documents, as prescribed in sub-clause (iv) of clause (b) of proviso to section 219 of the Companies Act, 1956, instead of sending a full Annual Report;

Periodical financial results may be submitted on “half yearly basis”, instead of “quarterly basis” and

SMEs need not publish their financial results, as required in the Main Board and can make it available on their website.

The above listing conditions are specified in exercise of the powers conferred under Section 11 read with Section 11A of the Securities and Exchange Board of India Act, 1992.

The Model SME Equity Listing agreement specified in the „Annexure A‟ shall come into force with immediate effect.

execute the Listing Agreement with the issuing companies in line with the Model Listing agreement specified in the Annexure, without limiting or diluting any of the requirements thereof;

make necessary and consequential amendments, if any , to their bye-laws for the implementation of the above decision;

disseminate the same on their website for easy access to the Issuers and investors; and

communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report.

that letters of allotment will be issued simultaneously and that in the event of its being impossible to issue letters of regret at the same time, a notice to that effect will be inserted the press so that it will appear on the morning after the letters of allotment have been posted;

that letters of right will be issued simultaneously;

Source: SecMarx — Conditions of listing for issuers seeking listing on SME Exchange - Model SME Equity Listing Agreement. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.