Applies now: Vedant Poly Fabs, allotment out · lists 9 Nov. See 1 more
Two platforms, one set of investor rules
India has two stock exchanges with a national trading platform, BSE and NSE. Each runs a separate platform for small and medium enterprises:
- BSE SME, run by BSE.
- NSE Emerge, run by NSE.
A company raising a small amount lists on one of them through an SME IPO. Companies whose post-issue paid-up capital is up to ₹25 crore can use these platforms, under Regulation 229 of SEBI’s ICDR Regulations.
For you as an investor, the rules that matter most come from SEBI, so they are the same on both platforms. The differences sit mostly on the company’s side: what it must show to be allowed to list.
What is the same on both
| Rule | BSE SME and NSE Emerge |
|---|---|
| Minimum bid | Two lots, worth more than ₹2 lakh |
| Cut-off price | Not allowed for SME IPOs |
| Cancelling a bid | Not allowed once placed |
| Market maker | Required for three years, with at least 5% of the issue |
| Timeline | T+3: allotment on T+1, listing on T+3 |
| Listing day | Special pre-open session, then trade-for-trade for 10 days |
| After listing | Shares trade in whole lots |
The minimum bid rules apply to SME IPOs opening from 1 July 2025, under NSE’s circular of 18 June 2025, and the same process applies on BSE SME. Read the minimum investment in an SME IPO for worked amounts.
How the listing criteria differ
On top of SEBI’s rules, each exchange sets its own conditions for companies. Every SME RHP quotes them in a section called “Eligibility for the Issue” or “Eligibility for the Offer”. Here is what two October 2026 RHPs quote:
| Criterion | BSE SME (Carver Roboweld RHP) | NSE Emerge (HGS (India) RHP) |
|---|---|---|
| Operating profit | At least ₹1 crore in two of the last three years | At least ₹1 crore in two of the last three years |
| Net worth | At least ₹1 crore in each of the last three years | Positive |
| Net tangible assets | At least ₹3 crore in the last year | Not listed |
| Debt to equity | Not more than 3 to 1 | Not listed |
| Free cash flow to equity | Not listed | Positive in two of the last three years |
| Track record | Company history set out in the RHP | More than three years |
The two exchanges test different things. BSE’s criteria look at the balance sheet, such as assets and borrowing. NSE’s look at whether the business generates cash.
These criteria change from time to time. Treat the table as an example, and read the eligibility section in the RHP of the IPO you are looking at.
Where bid data is published
This difference affects you during the IPO.
- NSE Emerge. NSE’s IPO page shows the shares bid and the number of applications in each investor category during bidding.
- BSE SME. BSE’s IPO page shows the number of shares bid at each price in the band, and a demand schedule.
Final category-wise figures for both appear in the basis of allotment, which the registrar publishes after the close. Read how to read the basis of allotment to find them.
A worked example
From 5 October to 2 November 2026, IPO24by7 covered 14 SME IPOs. Eight were on BSE SME and six on NSE Emerge.
| SME IPO | Platform | Price | Lot size | Minimum bid |
|---|---|---|---|---|
| Carver Roboweld | BSE SME | ₹76 to ₹80 | 1,600 | ₹2,56,000 |
| Antala Industries | BSE SME | ₹62 to ₹66 | 2,000 | ₹2,64,000 |
| Vedant Poly Fabs | NSE Emerge | ₹88 to ₹94 | 1,200 | ₹2,25,600 |
| HGS (India) | NSE Emerge | ₹114 to ₹120 | 1,200 | ₹2,88,000 |
The minimum bid is two lots at the upper price, our calculation. Each is above ₹2 lakh on both platforms, because the same SEBI rule applies.
Take Vedant Poly Fabs. One lot of 1,200 shares at ₹94 is ₹1,12,800. Two lots make ₹2,25,600, just above ₹2 lakh. On BSE SME, the same rule produces the same kind of amount.
Listing day and the first weeks
The first days after listing follow the same pattern on both platforms. The market making sections of the Carver Roboweld and Vedant Poly Fabs RHPs set them out.
- Special pre-open session. On listing day, orders are collected from 9 am and matched to find one opening price. Normal trading starts at 10 am.
- A 5% band on day one. For issues of up to ₹250 crore, the price can move at most 5% either side of the opening price for the rest of the day.
- Trade-for-trade for 10 days. For the first 10 trading days, every trade must be settled by delivery. You cannot buy and sell the same shares within the day.
- Market maker quotes from day one. The market maker starts quoting from listing, within the same spread table on both platforms.
So a share that lists on BSE SME behaves much like one on NSE Emerge in its first weeks. Read listing day and the special pre-open session for how the opening price is set.
Moving to the main board
An SME company does not have to stay on the SME platform. Once it grows, it can apply to move its shares to the exchange’s main board. This is called migration.
Each exchange sets its own migration conditions, such as size, profit record and the number of shareholders. The company needs shareholder approval and the exchange’s approval.
Migration matters to investors in two ways. On the main board, shares trade one at a time rather than in lots, and a market maker is no longer needed. Our IPO pages show a company’s current platform in the key facts.
Questions to ask before you bid
Whichever platform an SME IPO uses, the same questions apply:
- What does the eligibility section show? It gives net worth, operating profit and, for NSE Emerge, cash flow, in one place.
- Who is the market maker? The RHP names it and its terms.
- How much of the issue is for sale by existing shareholders? Money from an offer for sale goes to them, not the company.
- Can you afford to hold two lots for a long time? SME shares can be hard to sell.
How to tell which platform an IPO uses
- Look at the IPO page. On IPO24by7, the exchange appears in the key facts, as “BSE SME” or “NSE SME”.
- Check the RHP cover page. It names the platform and the designated stock exchange.
- Check your broker’s app. SME IPOs are often listed in a separate tab, with the exchange beside the name.
After listing, NSE Emerge shares trade on NSE and BSE SME shares trade on BSE. You need a broker that offers trading on that exchange’s SME platform. Most large brokers offer both.
Does the platform matter for you?
For most investors, the platform matters much less than the company.
Both platforms list small companies whose shares can be hard to sell. Both use a market maker who quotes prices, but who can stop buying after three months once it holds a set share of the issue. Read what a market maker does.
The platform is worth knowing for three practical reasons:
- Where to watch bids. NSE shows bids by category; BSE shows bids by price.
- Where to sell later. You trade on the exchange where the shares listed.
- Which criteria the company met. The RHP shows the figures behind each one.
Common mistakes to avoid
- Treating the platform as a quality mark. Listing on either says the company met the minimum criteria, not that it is a good investment.
- Comparing BSE bid figures with NSE subscription figures. They are published in different forms. Compare final figures from the basis of allotment.
- Assuming your broker supports both. Check before the IPO that you can trade SME shares on that exchange.
- Skipping the eligibility section. It shows the company’s net worth, operating profit and cash flow figures in one place.
- Expecting single-share trading. On both platforms, SME shares trade in whole lots.
What to do next
See every open and upcoming SME IPO on our SME IPO list. Then read SME IPO vs mainboard IPO and the risks particular to SME IPOs.
Sources: SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, Chapter IX (SME issues), Regulations 229 and 261; Carver Roboweld RHP, Eligibility for the Issue (BSE SME criteria), October 2026; HGS (India) RHP, Eligibility for the Offer (NSE Emerge criteria), October 2026; NSE circular NSE/IPO/68604, 18 Jun 2025: two-lot minimum, no cut-off and no cancelling for SME IPOs opening from 1 Jul 2025.
Frequently asked questions
What is the difference between BSE SME and NSE Emerge?
They are the SME platforms of the two exchanges. The investor rules are the same on both, because SEBI sets them. The differences are the extra listing criteria each exchange applies to companies and the way each publishes bid data.
Is NSE Emerge safer than BSE SME?
Neither platform makes an IPO safer. Both list small companies with thinner trading than the mainboard. The company's business, finances and price matter far more than the platform. Our guide to SME IPO risks covers what to check.
Can an SME company list on both BSE SME and NSE Emerge?
An SME IPO lists on one SME platform. The RHP names it as the designated stock exchange. The company can move to a main board later, under the exchanges' migration rules.
Is the minimum investment the same on both platforms?
Yes. Since 1 July 2025, an individual must bid for at least two lots worth more than ₹2 lakh on both, with no cut-off price and no cancelling once placed.
Where can I see subscription for a BSE SME IPO?
BSE shows bids received at each price on the IPO's page on its website. NSE shows shares bid and applications by category for NSE Emerge IPOs. Final category figures for both appear in the basis of allotment published after the close.
Do both platforms use a market maker?
Yes. SEBI requires a market maker for at least three years after listing on either platform, with at least 5% of the issue reserved for it.