Definition
Migration to Mainboard
Migration is the process by which an SME-listed company moves up to the mainboard of the NSE or BSE once it meets the larger exchange's criteria.
SME companies that grow and meet mainboard eligibility — including paid-up capital, profitability and public-shareholding thresholds — can migrate to the main exchange. Migration brings access to a wider investor base, index inclusion and greater liquidity, and removes the market-maker requirement.
The move requires shareholder and exchange approval and compliance with SEBI mainboard norms. Migration is often seen as a milestone signalling that an SME has matured into a fully-fledged listed company.
Related terms
- SME IPOAn SME IPO is a public issue by a small or medium enterprise listed on a dedicated exchange platform with relaxed eligibility but higher minimum investment.
- Mainboard IPOA mainboard IPO is a public issue on the primary boards of the NSE and BSE, subject to the full SEBI eligibility and disclosure regime.
- Minimum Public ShareholdingMinimum public shareholding (MPS) is the SEBI rule requiring listed companies to keep at least 25% of shares with the public.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.