Ahmedabad: Small and medium enterprises (SMEs) have slowed down to reach the main platform of the stock market. In 2024 and 2025, such migration cases have come down significantly due to strict rules for access to major markets.
In December 2024, the Securities and Exchange Board of India (SEBI) in its board meeting made a change in the rules for transferring shares of SME companies to the main board, after which the Stock Exchange tightened the eligibility criteria. Because of this, the pace of going to the main market slowed down.
This revised system was notified in March 2025. This may further slow the way to reach the main board of the stock exchange of companies listed on the SME platform.
In addition, the difference between SME listing and coming on the main board has also increased. The average time for SME shares to reach the main board in 2019 was less than two years, but in 2024 it has now reached about five years. This is mainly due to the rule according to which it is necessary to be listed on the SME platform for at least three years before coming to the main board.
Last month, the National Stock Exchange had tightened the eligibility criteria for this. Now it is mandatory for such companies to earn a revenue of at least Rs 100 crore in the last financial year. Additionally, in the last three years, the company would have earned positive operational benefits in at least two years. Additionally, high promoter shareholding is also mandatory.
In its November 2024 counseling paper, SEBI had expressed concern about the decrease in promoter shareholding immediately after the SME listing and allowed the lock-in conditions to be removed in a phased manner. He also stressed the need for strong corporate administration amid the increasing dangers of misconduct. These risks mainly include misuse of money and exit of promoters after listing.
In 2025 only one company will be able to move from the SME platform to the mainstream platform.
In the current calendar year, only one company has come from the SME platform to the main platform, while in 2024 the number was 12. Between 2020 and 2022, this average number has been around 50 annually. Thus, this number has reduced considerably compared to previous years. Recently, the payment service provider network Peepal Services Technology Company has been transferred from NSE Emerg platform to NSE and BSE main boards.
