Q: What is the paid up capital requirement for SMEs to get listed on PSX SME Board?
A public company with post issue paid up capital of not less than Rs. 25 million and not more than Rs. 200 million can get listed on PSX SME Board.
Q: How many initial subscribers are required to buy shares of an SME?
Initial subscribers should be at least five. Those initial subscribers should at least buy Rs. 1 million shares each.
Q: How is the SME Board different from SME Exchanges in other countries?
The SME Board at PSX has been formulated after detailed study of the best SME Exchanges across the world and taking into account the feedback from the market participants. The SME Exchanges elsewhere in the World, like AIM (London), TSX V (Canada), BSE SME (India) GEM (Hong Kong), MOTHERS (Japan), KOSDAQ (Korea) and NASDAQ (US) were studied in detail to understand their salient features, best practices and their SME exchange model. The experience about the capital market realities are taken into account in formulating the PSX SME Board.
Q: What documents does an SME company need to provide to the Exchange to get listed?
An SME company needs to provide the following to the Exchange:
(i) Information Memorandum (IM);
(ii) Listing application
(iii) Feasibility Report
(iv) Documents prescribed in Annexure 1 of the PSX Book.
Q: Who can be an Advisor and Consultant for an SME?
The following can act as an Advisor and Consultant for an SME:
i. Corporate brokerage houses;
ii. CA firms;
iii. Investment banks;
iv. Any other entity licensed by SECP to act as an Advisor and Consultant to the Issue.
Q: What is the scope of Advisor and consultant’s work in the listing process?
The duty of Advisor and Consultant is to appraise the SME and its project, either on his own or in consultation with other market expert(s), and include in the feasibility report that he has:’
(i) Examined the technical, managerial, commercial, economic and financial aspects of the project and/or the SME;
(ii) Has reviewed all the material contracts/agreements relating to issue/offer of equity securities by the SME;
(iii) Has reviewed all the contents of the Information Memorandum and found them true and complete to the best of its knowledge and belief;
(iv) Is satisfied that the SME has or will have the necessary operational infrastructure to carry out its business;
(v) Is satisfied that the SME and its project are viable and investment worthy;
(vi) Has ensured and will continue to ensure that the SME complies with the obligations at all times;
(vii) Shall act honestly, impartially and with due care and skill at all times; and
(viii) Shall comply with the applicable regulatory and contractual obligations at all times.
Q: What would be the initial listing fee for an SME?
Initial listing fee for an SME would be minimal, i.e. 0.05% of post issue paid up capital subject to a maximum of Rs. 50,000/-.
Q: Is PSX considering any relaxation of Annual Listing Fees for the SMEs?
The annual listing fee for the SME Board is considerably relaxed in contrast with the Main Board. The SMEs shall pay the listing fee as per the following schedule:
|S. #||SMEs having Paid-Up Capital||Amount of fee|
|(i)||Up to Rs. 50 million||Rs. 20,000/-|
|(ii)||Above Rs. 50 million & up to Rs.100 million||Rs. 30,000/-|
|(iii)||Above Rs.100 million & up to Rs. 200 million||Rs. 40,000/-|
Q: What is the order size for trading in secondary market?
In secondary market, minimum order size is Rs.100, 000.
Q: Is Code of Corporate Governance applicable on companies listed on the SME board?
No. Code of corporate governance is not applicable on SMEs listed on the SME Board.
Q: Is developing a website and keeping it updated necessary for an SME?
Yes. It is mandatory for SME Company to have a website. Information like Information Memorandum and Financial Statements (Annual & Periodic) are to be disseminated through SME website.