Although SME contribute a large portion to Indian Economy like 40% of the workforce in India , 45% of manufacturing output etc. Yet previously, SMEs used to demand only on Banks and Financial Institutes for capital requirement that too subjected to various loan constraints.
But since 2012, BSE and NSE have launched SME platforms where they could raise funds from the capital markets. Also, after few years the company can get their share transferred from SME platform to the Main Board.
The company should
Yes, there are capital tax benefits on SME, but it varies for listed and unlisted securities. For unlisted securities, short term capital gains are upto 30% while long term capital gains are upto 20%. Whereas, for listed securities, short term capital gains are upto 15% and long term capital gains are NA, if the company has paid Securities Transaction Tax.
Yes there are annual maintenance charges. It is higher of either 25000 or 0.01% of full market capitalization. Market Capitalization is calculated as average of the prices on the last day of the financial year.
Since, regulation 260 is not applicable to SME IPO , therefore IPO grading is not required for listing on SME exchange.
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