How to list your company on SME platforms: SME listing process explained

Listing a company on an SME platform involves more than launching an IPO. The company has to meet eligibility conditions, appoint the required intermediaries, prepare its offer document, and complete the exchange's approval process. This guide explains the SME listing process from initial checks to the final listing on NSE Emerge or BSE SME.

To list a company on SME platforms, the company first needs to check the applicable eligibility criteria and prepare its financial, legal and corporate records. It then appoints a merchant banker, prepares the draft offer document (DRHP), files it with the chosen exchange and responds to the exchange's queries. After in-principle approval, the company completes the IPO process, allotment and final listing formalities.

The first part of the SME listing process is checking whether the company meets the  Eligibility requirements of SEBI and SME platform of exchanges. For example, NSE Emerge currently requires post-issue paid-up capital to be not more than Rs 25 crore. Eligibility criteria also require a three-year track record, operating profit of at least Rs 1 crore in any two of the previous three financial years, positive net worth, and positive FCFE in at least two of the previous three financial years.

BSE SME also has exchange-specific eligibility conditions. 

For more details on the eligibility requirements of both NSE Emerge and BSE SME, visit SME Eligibility Criteria in India.

Before filing, the company needs to ready its financial statements, corporate records, statutory filings, and other disclosures in order.

The company also needs to decide how much capital it wants to raise and how the IPO proceeds will be used. These details become part of the offer document and must be supported by proper disclosures.

A Merchant Banker, also known as the lead manager/Book Running Lead Manager, plays a central role in the SME IPO.

The merchant banker handles due diligence, helps prepare the draft offer document and coordinates with the company, exchange and other issue intermediaries.

For SME issues, the IPO must be 100% underwritten, with the lead manager underwriting at least 15% of the total issue from its own account. Compulsory market making is also required for at least three years from the date of listing.

The company and its merchant banker prepare the draft prospectus or other required offer document according to the SEBI ICDR Regulations and applicable exchange requirements.

company, along with Merchant Banker, files the draft prospectus with the exchange along with the documents required in the exchange's IPO vetting checklist.  The exchange reviews the document against its listing requirements and can raise queries that the company needs to answer the same queries.

After reviewing the application and responses to its queries, the exchange can grant in-principle approval.

This is an important stage, but it is not the same as the company being listed in principle approval is the approval for preparing the final offer document. The company along with Merchant Banker files the final prospectus with the Exchange, SEBI, and ROC and opens the IPO.

Once the required approvals and filings are complete, the company can proceed with the public issue.

The IPO documents contain details such as the issue size, price/Price Band, objects of the issue, financial information, risks and issue timetable. Investors apply according to the applicable SME IPO rules.

Since July 1, 2025, the SME IPO bidding process has used the "Individual Investor" category instead of the earlier retail category. An Individual Investor must apply for two lots with a minimum application size above Rs 2 lakh.

After the issue closes, the company completes the basis of allotment and submits the required documents to the exchange.

Time line of allotment has changed from T+6 to T+3, now all the requirements need to complete within the timeline of 3 days.

Once the exchange grants listing and trading permission, the company's shares can begin trading on the SME platform.

Listing does not end the company's continuing disclosure and reporting responsibilities and after listing compliances. SME platform of Exchanges issued their compliance calendar includes periodic financial reporting, shareholding disclosures and event-based filings.

The company also needs to keep its market-making arrangement as required under the SME framework.

The SME listing process starts with eligibility checks and preparation of the company, followed by appointment of a merchant banker, offer document preparation, exchange review, IPO and final listing.

NSE Emerge and BSE SME have their own requirements, so a company needs to check the latest rules of its chosen exchange before starting the process.

Ans. The SME listing process includes checking eligibility, appointing a merchant banker, preparing the offer document, obtaining exchange approval, completing the SME IPO and receiving final listing permission.

Ans. NSE operates the NSE Emerge platform, while BSE operates the BSE SME platform. Companies need to meet the applicable SEBI and exchange-level requirements.

Ans. NSE Emerge currently specifies that post-issue paid-up capital should not exceed Rs 25 crore. BSE SME also has a Rs 25 crore post-issue paid-up capital criterion.

Ans. Yes. The merchant banker handles due diligence, the offer document, underwriting and exchange coordination.

Ans. The timeline depends on preparation, exchange review, approvals and the IPO schedule. Once the issue closes, NSE's published process provides for allotment on T+1, listing documents on T+2 and listing from T+3, subject to completion of the required formalities.

Sources

• NSE Emerge eligibility criteria; NSE Emerge requirements and process; NSE company listing process; BSE SME eligibility criteria