NSE SME Migration Rules: New Mainboard Eligibility from May 2025
Why in the news
The exchange raised the bar for small listed firms moving to its main platform, following regulatory concern over SME governance.
Eligibility from May 1, 2025
| Criterion | Requirement |
|---|---|
| Revenue | At least ₹100 crore in the previous year |
| Operating profit | Positive in two of the last three years |
| Market capitalisation | Average at least ₹100 crore at migration |
| Promoter holding | At least 50% of what they held at listing |
| Public shareholders | 500 |
| Debt record | No defaults on debentures, bonds or fixed deposits |
| Regulatory record | No material action in three years |
Background
- A Sebi crackdown on fund diversion, manipulated financials and fictitious transactions led to tighter norms.
- Migration moves a firm from NSE Emerge to the mainboard.
- 142 companies have migrated; 605 SMEs raised ₹16,587 crore by February 2025 since 2012, with 40% from retail investors in February.
Exam angle
- SME platform of NSE: Emerge.
- Effective date: May 1, 2025.