According to the new norm, the companies with paid-up capital of up to Rs 25 crore would not have to seek permission from Securities and Exchange of India (SEBI) while listing an IPO.
The norm would be effective from September this year. However, the companies would still need to have an approval from the exchange. The exchange facility was further confirmed by BSE head of product strategy Sayee Srinivasan.
Srinivasan further mentioned that the exchange facility, which would serve the small and medium enterprises, would be effective from September. NSE too has received in-principal approval for similar SME exchange.
He further mentioned that a minimum trade of Rs 1 lakh would be required in order to participate in the trading. The amount was kept so low after considering the small investors who do not have access to small private companies.
