Sharp Drop in Migrations
- Only 1 SME has migrated to the mainboard in 2025 (as of May 5)
- 12 firms migrated in 2024, down from an average of ~50 annually (2020–2022)
Key Regulatory Changes
- SEBI revised migration norms in its December 2024 board meeting
- New framework notified in March 2025
- NSE introduced stricter eligibility norms in April 2025
Revised Eligibility Criteria
- Minimum revenue of ₹100 crore in the previous financial year
- Positive operating profit in at least 2 of the past 3 years
- Promoters must retain at least 50% of their initial stake post-listing
- Firms must meet enhanced corporate governance standards including no regulatory violations or defaults
Widened Transition Timelines
- Average migration time now ~5 years in 2024 versus under 2 years in 2019
- Rule now mandates a minimum 3-year gap between SME listing and mainboard migration
Impact on SMEs
- Many SMEs disqualified despite being high-growth or well-run
- Elevated thresholds and compliance burden cited by legal experts as key obstacles
- Some analysts believe regulatory clarity may encourage better-prepared firms to pursue migration
