Sebi Weighing Continuing Listing Criteria With Minimum M-Cap Of Rs. 10 Crore

Posted By:
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    At the time of listing, the market regulator stipulates a minimum market cap of Rs. 25 crore, however unlike international practice there is no continued listing criteria in India. But in order to weed out high number of penny stocks from the Indian bourses which see infrequent trading with few investors, SEBI is said to consider a proposal of minimum market cap of Rs. 10 crore for continued listing on exchanges in India.

    Sebi Weighing Continuing Listing Criteria With Minimum M-Cap Of Rs. 10 Crore

    Read about what are Penny stocks?

    It has been found that out of the 5000 listed companies, some 1000 companies fall in the category of penny stocks. And to move them out of the exchanges in India, besides the market-cap limit, the committee is suggesting some other measures such as maintenance of minimum trading turnover in proportion to m-cap, profitability and net worth norms for companies.

    Additionally, SEBI and exchanges are weighing a continued minimum asset base or net worth of Rs. 25 crore to remain listed on the bourses.

    Goodreturns.in

    Story first published: Wednesday, January 10, 2018, 10:47 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more