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

To list a company on the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE), it must meet specific eligibility criteria, including financial performance, corporate governance, and public shareholding requirements. Companies need a minimum net worth, profitability track record, and compliance with SEBI regulations before applying for listing.

1. Minimum Capital and Net Worth Requirements

For a company to be listed on NSE or BSE, it must meet specific financial criteria:

• Net tangible assets: At least ₹3 crore for BSE and ₹15 crore for NSE.
• Net worth: Minimum of ₹1 crore for BSE and ₹10 crore for NSE.
• Minimum paid-up capital: ₹10 crore for NSE and ₹3 crore for BSE.

2. Profitability and Track Record

Companies need a strong financial track record before listing:

• Profitability: The company must have a minimum profit of ₹5 crore in the last three financial years.
• Operating history: Must have been in business for at least three years.
• Positive net worth: The company must not have accumulated losses that exceed net worth.

3. Minimum Public Shareholding

A company must offer shares to the public before listing:

• Minimum public shareholding: 25% of total shares must be held by the public.
• Minimum number of shareholders: At least 1,000 shareholders for NSE and 500 for BSE.

4. Corporate Governance and SEBI Compliance

Companies must adhere to strict regulations and governance standards:

• SEBI compliance: Must follow all SEBI (Securities and Exchange Board of India) regulations.
• Corporate governance: A board of directors with independent members is required.
• Transparency: Companies must regularly disclose financial reports and material events.

5. Conclusion

Listing a company on NSE or BSE provides greater visibility, credibility, and access to capital. Companies must meet financial, governance, and regulatory requirements to qualify. By fulfilling these criteria, businesses can enter the stock market and attract investors.