Source :19 May 2010, 0047 hrs IST,ET Bureau
MUMBAI: The Securities and Exchange Board of India (SEBI) has relaxed share-listing norms for small and medium enterprises (SMEs) by allowing them to disclose their financial results every six months instead of three months, as is the norm for bigger companies.
Companies listed on the SME exchange will not be required to send a full annual report to their shareholders and also need not publish their financial results as required in the main stock exchange.
“Companies listed on the SME exchange may send to their shareholders a statement containing the salient features of all the documents,” the regualtor said in its circular.
But these companies will have to maintain a public shareholding of at least 25% of the total number of issued shares at all times. In other words, the promoters’ stake cannot exceed 75%.
A company listed on the SME exchange, having post-issue capital between Rs 10 crore and Rs 25 crore can migrate to the main exchange provided it meets the listing requirements of the stock exchange. For this purpose, the company must first make a proposal to list the specified securities and obtain the prior approval of its shareholders.
“The issue shall be 100% underwritten and the merchant bankers shall underwrite 15% in their own account. Merchant bankers can also enter into an agreement with nominated investors to subscribe to the unsubcribed portion of the issue,” the SEBI circular said.
A stock broker of the main exchange need not seek fresh registration for trading on the SME platform. Similarly, a sub-broker also need not seek fresh registration, where s/he is affiliated to stock broker who is eligible to trade on SME platform.
SEBI has also decided to grant approvals to only corporatised and demutualised entities for operating as an SME exchange,unlike earlier when it had decided to give time to entities to comply with the regulations.
Besides having a balance sheet net worth of Rs 100 crore, it must also have nationwide trading terminals and an online screen-based trading system.
The exchange must also have an online surveillance capability which monitors positions, prices and volumes in real time to keep a tab on market manipulation.
“It shall have adequate arbitration and investor grievances redressal mechanism operative from all the four regions of the country,” the regulator said.
The risk management system and surveillance system should be the same as it is currently for the cash market segment, the SEBI circular said.
No comments:
Post a Comment