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Turnover Less than Rs.500 Crores in equity segment during immediate previous Financial Year. Applicable from
March 1, 2016.
Sr. No. Title of Norms Norms.
1. Issued and Paid up capital Minimum issued, paid up and listed equity capital Rs 10 crores.
2. Net worth requirement Positive Net worth in preceding 3 Financial Year.
(Net worth would consist of all the listed capital at any exchange + Free Reserves).
Note: Net worth certificate from Statutory Auditor to be provided.
3. Profit making track record Net Profit before tax greater than or equal to Rs. 1 crore in each of the 3 previous financial years of the entity that has applied for Direct Listing.
Note: NPBT certificate from Statutory Auditor to be provided, if published Annual Reports not available.
4. Listing track record with Recognized Stock Exchange
Listed on any recognized Stock Exchange as defined.
5. Public Shareholding The company shall be in compliance with Regulation 38 of the
Page 2 of 12 Regulations, 2015 with regard to minimum level of public shareholding.
6. No. of public shareholders Minimum 500 public shareholders.
7. Signing with both the depositories The company must enter into an agreement with both the depositories’ copies of the same to be submitted with ISIN activation letter.
Or
Provide a copy of SEBI circular (transfer to normal segment) wherein company’s name is mentioned.
8. Trading in Compulsory Demat Company should have minimum 50% of Public Shareholding in
dematerialized mode and 100% of Promoters’ Shareholding in demat mode, else trading and settlement of the securities of the company will permitted only on Trade-for-Trade basis till compliance of the above referred requirement.
9. Company Profile Company Profile based on the format as provided in checklist,
as certified by the Company Secretary/ MD of the Company.
10. Withdrawal/Rejection Once companies that have approached for listing are denied
listing for any reason whatsoever, they may reapply for listing after a minimum period of 6 months (6 months after date of rejection). If rejected a second time, the company would not be eligible to apply again.
Page 3 of 12 11. Confirmation from recognized Stock
Exchange
(To be submitted in original )
The company shall submit a confirmation from any one of the recognized stock exchange(s) : Letter must be dated before de-recognition of the Stock Exchange
a. Entire issued capital of the company must be listed on the recognized stock exchange
b. No investor complaints pending against the company
c. The securities proposed to be listed are not under suspension.
12. Confirmation from MD & Company Secretary
Confirmation from MD and CS that Company has not been de-listed from BSE at any time under delisting regulation 2003 /2009. Where a company has been delisted from BSE, a period of at least 10 years should have elapsed since the delisting and the company should have continued to remain listed with at least one Stock Exchange.
13. Compliance Status by Company The company shall furnish the compliance status with (SEBI (Listing Obligation and Disclosure requirement) Regulation, 2015) (Regulation
6, 7, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 31,33, 34,38,40,42 and 46) and, Reconciliation of share capital audit report and and Sec Audit, filings under SEBI regulations/ circulars, SCRA and SCRR for the last 1 year
Page 4 of 12 14. Action against company/ promoters/
promoter group entities/ directors
Where the company or the promoters or the Directors have been debarred or disciplinary action has been taken against them by SEBI, then a period of at least 3 years should have elapsed since the expiry of the debarment
15. Reference to BIFR or winding up Company should not be under BIFR and no winding up order should have been passed against the company, at the time of application for listing.
The group companies / subsidiary companies of the applicant company are not in the list of defaulter in payment of BSE Annual Listing Fees and are in compliance with all the SEBI Listing Regulations.
16. Company website The company shall have its own website in compliance with
(Regulation 46) of the (SEBI (Listing Obligation and Disclosure requirement) Regulation, 2015) containing information about products, management team, annual reports for last three financial years, shareholding pattern, quarterly results, report on corporate governance, code of conduct, name of the company secretary & compliance officer and contact details, RTA - name and contact details etc.
The company registered office mentioned in application and in the SCORES system shall be same.
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17. SCORES authentication The company shall submit the “NIL” Investors Complaints
Report extracted from SCORES.
The company registered office mentioned in application and mentioned on SCORES should be the same. The address of the RTA must also be mentioned in SCORES.
18. Site Visit Site visit will be mandatorily conducted by Exchange official(s)
and report submitted.
The site visit would be carried out only at the company’s registered office which is mentioned in Direct Listing Application. Registered office of the company must be operational.
Company shall not shift its registered office after submitting the application for listing under Direct Listing to BSE till commencement of trading.
Note: Companies whose equity shares are available for
trading under permitted category at BSE and the same company apply for listing under direct listing norms are exempted from the site visit.
19. Lock-in of Promoter Holding Entire promoter shareholding to be kept under lock-in for a period of 3 years from date of listing at BSE.
Page 6 of 12 20. Adherence to Rules and Regulations The company shall give an undertaking w.r.t Adherence to
Rules and Regulations
(SEBI (Listing Obligation and Disclosure requirement) Regulation, 2015) (Regulation
Securities Contracts (Regulations) Act, 1956 Securities Contracts (Regulations) Rule, 1957 Companies Act 1956 / Companies Act 2013,
Securities and Exchange Board of India Act, 1992, any rules and/or regulations framed under foregoing statutes, as also any circular, clarifications, guidelines issued by the appropriate authority under foregoing statutes.
21. Changes in the capital of the
company & change in shareholding
There shall be no change in the equity share capital of the Company in the last one year prior to the date of the application. However, in case of change in the equity share capital in companies where the shareholding of the existing promoters is minimum 25% (both pre and post the preferential issue), such companies may be eligible to apply, provided such additional equity capital as well as entire promoters capital is offered for lock-in for a period of 3 years from the date of commencement of trading at BSE.
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Further, there shall be no change in the equity capital of the company from the date of application till the date of commencement of trading at BSE.
It is further clarified that change in the equity capital due to stock split, issuance of bonus shares, forfeiture of shares, consolidation/reduction of capital would not be considered as change in capital.
22. Company Secretary Every company applying for Listing under Direct Listing must
have appointed a full time qualified company secretary on its payroll. The company shall submit the following documents:
Certified true copy of Form 32 / DIR 8 filed with the Registrar of Companies and submit the acknowledged copy of the said forms.
23. Promoter’s Holding Promoter together with promoter group must hold at least
25% of equity shares in the applicant company at the time of making an application for listing.
Entire promoter shareholding should be in demat mode.
However, the company shall be in compliance with clause 38 of (Listing Obligations and Disclosure Requirements) Regulations, 2015 regarding minimum public shareholding (MPS).
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24. Preferential Issue In case company has made preferential issue in last 3 years.
Following requirements shall be complied:
Names of allottees with their PAN and Residential/reg office address, category of allotees, no of shares allotted, lock – in date, distinctive numbers for each preferential issues.
Entire shares issued under preferential issue to be locked in for a period of 1 year from the date of listing at BSE
Justification as to how the preferential issue benefitted the company
Auditor certificate for utilization of proceeds together with supporting bank statements, copy of notice sent to
the shareholders, resolution passed by the
shareholders, etc.
All the preferential shares issued to be in demat mode. The Escrow account bank statement copies in which the
funds were received for the preferential allotment
25. Company business A letter from the company Managing Director / CS also
certified by company Statutory Auditor giving the present main business activity of the company, break-up of revenue generated from present line of business activity, at least 50% of the revenue must be generated from main business activity of the company in last two completed Financial Year.
Page 9 of 12 Details of changes in main business carried out by the company in last three financial years.
26. Name of the company The name of the company must reflect the nature of main
business activity which the company is carrying out.
27. Specimen signatures Company must submit specimen signatures of authorized
signatories who are authorized by the company board of directors to sign documents on behalf of the company for Direct Listing activity.
28. Appointment of advisor / merchant banker / professionals
Should the company desire to appoint an advisor / merchant banker to carry out Direct Listing activity, the company shall provide
1) Copy of board resolution appointing such advisor 2) Letter from company giving details of the advisor like
name, address, contact details, PAN, specimen signature
3) Letter from such advisor accepting the assignment 29. Company contact details In addition to advisor / merchant banker / professional,
company must give contact details of company officials. The contact details must include name, address, specimen signature, telephone number and mail id from company domain.
Page 10 of 12 and traded as per our circular 20151015-7 dated 15 Oct 2015.
BSE has the right to change / modify / delete any or all the above norms with or without giving any prior intimation to the company. The companies are required to submit documents and comply with the extant norms.
BSE reserves the rights to call for in person appearance of company officials (promoters, directors, CS) before the BSE officials, as deem fit.
The company shall also provide information about the last traded price and date of trade at the RSE where it was last traded.
Kindly note that the application submitted to the Exchange for listing and mere fulfilling the eligibility criteria does not amount to grant of approval by for listing. The company would be making application to seek in-principle approval by forwarding the documents only as per checklist available on BSE website.
The Exchange may reject application for new listing at any stage if the information submitted to the Exchange is found to be incomplete / incorrect / misleading / false or for any contravention of Rules, Bye-laws and Regulations of the Exchange, Listing Agreement, Guidelines / Regulations issued by statutory authorities or for any reason in the interest of Investors and market integrity. The Exchange may also reject / differ the application if the company is found not fulfilling internal BSE standards.
Page 11 of 12 Non-refundable scrutiny fee of Rs. 50,000/- (Rupees Fifty Thousand Only), which the company would submit
at the time of making initial Direct Listing application. Exchange would scrutinize the application.
Exchange will revert to the company for deficiencies in the documents, if any, within two weeks.
Exchange would give reasonable time of 2 to 3 weeks to the companies to correct the deficiencies in the application.
Should the company fail in providing the documents / clarification to the satisfaction of BSE in the stipulated time, the minimum fees of Rs 50,000/- (Rupees Fifty Thousand Only) shall be forfeited and the company would be required to give fresh application, along with scrutiny fee of Rs. 50,000/-.
If all documents are found to be in order, the Company shall be required to pay a non-refundable processing fee as detailed below :-
Normal Direct Listing Application Companies which were earlier de-listed from BSE but
seeking re-listing under Direct Listing
Particulars Listing Processing Fee* (In Rs) Listing Processing Fee* (In Rs)
Scrutiny fee / 50,000 50,000
Admission fee Not Applicable 5,00,000
Processing fee 25,00,000 25,00,000
Total 25,50,000 30,50,000
Page 12 of 12 (RSE) / other Stock Exchanges which propose to list at BSE under the direct listing route, in addition to the aforementioned criteria, the following norms will also apply:-
Applies to Companies whose equity shares were earlier delisted voluntarily / compulsorily or under SEBI (Delisting of Securities) Guidelines, 2003 / SEBI (Delisting of Equity Shares) Regulations, 2009 on BSE but continued to be listed on other Stock Exchanges
Such delisted Companies should have completed at least 10 years, from date of compulsory delisting, while applying for re-listing under Direct Listing norms of the Exchange
Such delisted companies would have to provide details of delisting letter/notice issued by BSE alongwith with old scrip code allotted.
Entire promoters holding of the company shall also be kept under lock-in for a period of 1 year from the date of commencement of trading at BSE. In case of companies previously delisted from the Exchange, the extant norms of lock in will continue to be applicable as per SEBI norms. In case of companies where there has been a change of capital as mentioned in point no. 21 above, the lock-in of promoters’ shareholding will be for a period of three years from the date of commencement of trading.
Such delisted Companies applying under Direct Listing Norms would have to pay non-refundable Admission Fees in addition to the non-refundable processing fees to the Exchange as applicable.
The norms will not be applicable to companies that are listed on recognized nationwide stock Exchanges but seeking listing through further public offering (FPOs), in such cases, the IPO norms of the Exchange will apply.
