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BankingNABARD / RBI

SME to Mainboard Migrations Fall Sharply After Tighter SEBI Norms

6 May 20251 min read
BANKING & FINANCESME to MainboardMigrations FallSharply After TighterSEBI Norms6 May 2025safalsetu.com

Why in the news

Stricter rules have sharply cut SME companies moving up to the main boards.

Key facts

  • Moves to the mainboard: 1 in 2025 so far, 12 in 2024, about 50 a year in 2020-2022.
  • Typical migration time: about 5 years in 2024, under 2 in 2019.
  • Framework notified in March 2025.

New eligibility

  • Last-year revenue of ₹100 crore or more.
  • Positive operating profit in 2 of the past 3 years.
  • Promoters keep 50% of initial stake; clean governance record.
  • Minimum 3-year gap after SME listing.

Impact

  • Good firms excluded; compliance burden blamed.

Test yourself

1. What minimum revenue in the previous financial year is required for SME to mainboard migration under the revised norms?

The revised criteria ask for minimum revenue of ₹100 crore.

2. What is the minimum gap now required between SME listing and mainboard migration?

The rule mandates at least a 3-year gap.

3. How many SMEs migrated to the mainboard in 2024, as per the report on stricter SEBI migration rules?

Twelve firms migrated in 2024, down from about 50 annually in 2020-2022.

This topic is part of Daily Current Affairs 6 May 2025 (16 topics).

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