Legal & Tax Final

8/12/2019 Legal & Tax Final

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Legal & Taxation

BSESME Exchange & Institutional

Trading Platform


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Group Members

Glen Nazareth - 26

Glen Noronha - 27

Dylan Rodrigues - 28

Royluis Rodrigues - 29

Nicolin Rosario - 30


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Established in 1875

Over 6000 stock listed

Provides a host of other services

to capital market participants

SMEs are the backbone of the

nation's economy

Bombay Stock Exchange (BSE)


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Hours of operation

Session Timing

Pre-open Trading Session 09:00 - 09:15

Trading Session 09:15 - 15:30

Position Transfer Session 15:30 - 15:55

Closing Session 15:50 - 16:05

Option Exercise Session 16:07

The hours of operation for the BSE quoted above are stated in terms thelocal time (GMT + 5:30).

BSE's normal trading sessions are on all days of the week except Saturday,

Sundays and holidays declared by the Exchange in advance


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Awards

The World Council of Corporate Governance has awarded the Golden Peacock

Global CSR Award for BSE's initiatives in Corporate Social Responsibility (CSR).

The Annual Reports and Accounts of BSE for the year ended 31 March 2006 and

31 March 2007 have been awarded the ICAI awards for excellence in financial

reporting.

It has been cited as one of the world's best performing stock market by Reuters.

The Human Resource Management at BSE has won the Asia - Pacific HRMawards for its efforts in employer branding through talent management at

work, health management at work and excellence in HR through technology.


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BSE SME provide immense

opportunities to the following market

participants.

Entrepreneurs :To raise equity capital for growth and expansion of SMEs in

a cost effective manner.

Investors :Opportunities to identify and invest in good companies at an

early stage, long term Capital Gain tax benefit and Exit Route.

Tax Benefits:

Tax Benefits Shares listed on BSE SME Unlisted Shares

Long Term Capital Gains Tax 0% 20% after

indexation

Short Term Capital Gains Tax 15% 30%


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Small & Medium Enterprise (SME)

The backbone of the nations economy

Micro, Small and Medium Enterprises (MSMEs) contribute

- 8% of the country's GDP

- 45% of the manufactured output

- 40% of our exports The Micro Small and Medium Enterprise (MSME) sector forms the largest

generator of employment in the Indian economy.

Need finance for growth as well as for existing operations.

Face problems in raising funds, providing securities and creating credibility in

market.

SME exchange is a stock exchange dedicated for trading the shares of small

and medium scale enterprises (SMEs)


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Need for SME Exchange

Equity financing opportunities

Lower the Debt burden

Expand the investors base

Enhance companysvisibility

Incentive for the employees


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Need for SME Exchange

Encourage Innovation and entrepreneurial spirit

Distribute risk more efficiently

SME sector will grow better on two pillars of Financial system i.e. Banking

and Capital Market

Build a bridge between the SMEs, Private Equity and the Venture Capital


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Institutional Trading Platform

According to section 106X,institutional trading

platform means, the trading platform in a SME

exchange for listing & trading of specified securities of

small &medium enterprises for informed investors.

Institutional trader manages relatively large amounts

of capital.

They are the ones who are actively responsible tokeep the market working.


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Benefits of listing on Institutional

Trading Platform.

Facilitate capital raising by small & medium

enterprises.

Provide easier entry & exit options for certaininvestors & some companies.

Provide better visibility & wider investor base.

Relaxed compliance & cost effective listing.

Tax benefits to long term investors.


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Eligibility Criteria for listing under

Institutional Trading Mechanism

The company, its promoter , group company or director doesn't appear in

Reserve Bank of India.

There is no winding up petition against the company, accepted by acompetent court.

The paid up capital of the company has not exceeded 25 crore rupees in

previous financial year.

The company has 1full years audited financial statements for immediate

preceding financial year.


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SME Exchange SEBI Guidelines

An issuer whose post-issue face value capital Between 1 crore and Rs10

crore will be invariably covered under the SME Platform.

An issuer, whose post-issue face value capital between Rs 10 cores and Rs

25 cores may get listed on either SME Platform or Main Board.

And issue with post issue face value capital above Rs 25 cores has to be

necessarily listed on the Main board of the BSE.

The minimum application amount as well as minimum trading lot shall notbe less than Rs.1,00,000/-

Net Tangible assets of at least Rs. 1 Crore as per the latest audited

financial results.


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SME Exchange SEBI Guidelines

Minimum 50 investors are required and each should invest at least Rs.

1,00,000/- at the time of IPO. (Compared to 1,000 minimum investors

required for BSE Main exchange)

Net Worth (excluding revaluation reserves) of at least Rs. 1 Crore as per thelatest audited financial results.

Company shall mandatorily facilitate trading in demat form.

Mandatory to have website of the company.

All existing Trading Members would be eligible to participate in SME

exchange without any further registration


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SEBI Guidelines Obligations of

Market Makers

The Merchant Banker shall be responsible for market making for a

minimum period of 3 years through a stock broker who is registered as

market maker with SME Exchange.

The market maker shall be required to provide two way quote for 75% of

timein a day, the same shall be monitored by the Stock exchange


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TH NK YOU

Legal & Tax Final

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