What are the eligibility criteria for a company to list on NSE/BSE?

What are the Eligibility Criteria for a Company to List on NSE/BSE?

Listing a company on the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE) opens up avenues for raising capital and enhancing market credibility. However, companies must meet specific eligibility criteria to be listed on these prestigious exchanges.

1. Minimum Paid-Up Capital

The company must have a minimum paid-up equity capital of ₹10 crore for listing on the main board of NSE or BSE. For smaller exchanges or SME platforms, the criteria may vary.

2. Net Worth and Profitability

Companies must have a positive net worth and a track record of profitability for at least three consecutive financial years. This ensures that only financially stable companies are listed.

3. Corporate Governance

The company must comply with SEBI’s corporate governance norms, including appointing independent directors, forming audit committees, and adhering to transparency standards.

4. Minimum Public Shareholding

SEBI mandates that at least 25% of the company's shares must be held by the public within three years of listing, ensuring sufficient market liquidity.

5. Track Record of Promoters

The company’s promoters and directors must have a clean record with no ongoing investigations or disqualifications under SEBI regulations.

6. Conclusion

Meeting the eligibility criteria is the first step for companies aiming to list on NSE or BSE. By adhering to these norms, companies can leverage the benefits of public listing, including access to capital and enhanced market credibility.