Eligibility needs
a transaction-specific check
Published criteria are a useful starting point. Formal eligibility must be assessed under the applicable SEBI framework by the issuer’s appointed merchant banker and the relevant exchange.
Eligibility for SME Listing
This is a plain-English starting point, not an eligibility certificate. The applicable framework includes SEBI's ICDR Regulations and the relevant exchange's current requirements; your appointed SEBI-registered merchant banker must confirm the applicable criteria, documentation and issue structure.
Last reviewed: 5 August 2026. Reference sources: SEBI ICDR Regulations, NSE Emerge eligibility criteria and BSE SME eligibility criteria.
“NSE Emerge” and “BSE SME” are referenced solely to identify exchange platforms. Northbeam Venture Private Limited is not affiliated with, endorsed by or authorised by NSE or BSE.
Corporate standing
- NSE Emerge's published conditions include incorporation in India under the Companies Act, 1956 or 2013.
- The conditions are tested at the time the public offer document is filed with NSE, the Registrar of Companies and SEBI.
Capital and financial profile
- NSE Emerge's published conditions include post-issue paid-up capital of no more than ₹25 crore (face value).
- Positive net worth and positive free cash flow to equity in at least two of the preceding three financial years are among its published conditions.
Track record
- NSE Emerge's published conditions include a three-year track record of the company, promoter/promoting company, or an eligible converted proprietary or partnership business.
- For a converted business, the applicable promoter experience and post-issue holding requirements must also be assessed.
Operating performance
- NSE Emerge's published conditions include operating profit (EBIDT) from operations of at least ₹1 crore in any two of the preceding three financial years.
- The evaluation should be based on audited financial statements and the facts of the issuer’s business—not projected valuation or a generic turnover threshold.
Offer structure and integrity
- NSE Emerge's published conditions limit an offer for sale to 20% of total issue size and limit selling shareholders to 50% of their holding.
- Its published conditions also do not permit SME issues where issue proceeds directly or indirectly repay loans from promoters, the promoter group or related parties.
Exchange-specific and legal checks
- NSE Emerge's published conditions include checks relating to BIFR referrals and admitted IBC proceedings involving the issuer and promoting companies.
- SEBI's ICDR framework and each exchange's own listing requirements, circulars and checklists must be considered for the specific exchange and transaction.
Understand your readiness first
We can help your leadership team organise the key facts, gaps and priorities before it begins formal discussions with an appointed merchant banker.
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