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WHAT IS INSTITUTIONAL TRADING PLATFORM
Institutional Trading Platform means a trading platform in a SME exchange for listing and trading of specified securities of small and medium enterprises for informed investors.
ELIGIBLITY
At least 1 year’s audited financial statements Not been incorporated for more than 10 years Revenue < Rs. 100 Crore Paid up capital < Rs. 25 Crore No need to have minimum 25% non- promoter shareholding
ELIGIBLITY
Existing investor/
lender
AIF, VC, Approved investor
Association of Angles
Schedule Bank
Registered Merchant
Bank
Specialized international or domestic multilateral agency or
PFI
Qualified Institutional
Buyer
Minimum investment
limit for the
existing investor is Rs. 50 Lakh
in equity shares of
the Company
Important:If the company
has received finance from
Schedule Bank for its project financing or
working capital requirements
and a period of 3 yrs has been lapsed & the
received funds has been
utilised then, it is sufficient
ELIGIBLITY
The company, its promoters, group company or director does not appear in the willful defaulters list of Reserve Bank of India as mentioned by Credit Information Bureau (India) Limited. There is no winding up petition against the company that has been admitted by a competent court. The Company, group companies or subsidiaries have not been referred to the BIFR within a period of 5 years prior to the date of application for listing. No regulatory action has been taken against the company, its promoter or director, by the Board, Reserve Bank of India, IRDA or MCA within a period of 5 years prior to the date of application for listing.
SME Listing - Way Forward
PREPARE IM
SUBMIT TO THE
EXCHANGE AND APPLY
FOR LISTING
EXCHANGE’S APPROVAL
Accordance to ICDR Regulation (Schedule XIXA)
Exchange will verify
&Make it available
on its website
Company’s Securities are
listed
IPO ROUTE V/S ITP ROUTE
PARTICULARS IPO ITPInitial Public Offer Yes No
Source of Information Offer Document (DRHP) Information Memorandum
Minimum application and trading lot
Rs. 1 lakh Rs. 10 Lakh
Private Placement Possible Possible
Rights Issue Possible Possible without option for renunciation
Migration Simple process for migration to main board
Only exitCompany may approach for IPO route or main board
Market Making Mandatory Not Mandatory
Reporting Half-yearly Half-yearly
OTHER CRITERIAS
The information document as prescribed in Sch. XIXA shall be made public on the website of the stock exchange for at least 21 days. Capital can be raised only through private placement, preferential issue, right issue or stock options At 20% of the post listing capital shall be hold by the promoters and this holding shall be locked-in for a period of 3 years from the date of listing All shares shall be converted into demat form and the trading shall be done only in dematerialized form Company shall in connectivity with atleast one depository at all times.
BENEFITS OF LISTING
BENEFITS FOR A COMPANY
HIGHER VISIBILITY & CREDIBILITY
SETTIN THE STAGE FOR
FUND RAISING IN
FUTURE
STOCK AS CURRENCY
LESSER DILUTION
BENEFITS FOR AN INVESTOR
EXIT & LIQUIDITY
FASTER DECISION MAKING
EASIER MONITORING
BETTER RETURN
BENEFITS OF LISTING
