Tightening norms for companies seeking to migrate from its SME platform to the main board, BSE today said firms, directors and promoters who have been barred by markets regulator Sebi will not be eligible for the move.
Accordingly, companies that are seeking migration from the small and medium enterprises (SME) platform to the main board, would be required to submit an undertaking that the company, its promoters and directors have not been debarred by Sebi. “Where there is any Sebi debarment order against the company, its promoters, directors, such company will not be eligible to migrate from SME to main board of BSE till such Sebi debarment order is in force,” the exchange said in a circular. Putting in place additional eligibility criteria for migration from SME to main platform of the BSE, the exchange said that if a company has been debarred from accessing the securities market, it cannot raise any funds.
However, bonus issues (not amounting to raising of funds from public) would be permitted to such extent as to not increase the post-issue capital to beyond `25 crore. However, where the directors and promoters of the company are debarred from accessing the securities market, then the company would be allowed to increase its capital to such extent so as to not increase thepost-issue capital to more than `25 crore. Further, BSE said that debarred entities would not be eligible to participate in any such further issue of capital.
