Question 1

How SME shares can be sold or purchase?

Accepted Answer

SME shares can be traded on the stock exchanges via your stock broker in a similar way as the mainboard shares are traded.
A few of the differences are:

SME shares can be traded only on the exchanges where they are listed i.e. BSE or NSE.
	SME shares are traded in lots instead of any numbers. For example:
		
			Mainboard share of Reliance Industries can be traded in a minimum quantity of 1 share.
			SME share of Timescan Logistics is traded in the lot size of 2000 shares. This means you can buy/sell a minimum of 2000 shares in one order.

SME Shares Lot Size Calculation Formula

Share Price

LOT Size (No. of shares)

Upto 14

10000

more than 14 upto 18

8000

more than 18 upto 25

6000

more than 25 upto 35

4000

more than 35 upto 50

3000

more than 50 upto 70

2000

more than 70 upto 90

1600

more than 90 upto 120

1200

more than 120 upto 150

1000

more than 150 upto 180

800

more than 180 upto 250

600

more than 250 upto 350

400

more than 350 upto 500

300

more than 500 upto 600

240

more than 600 upto 750

200

More than 750 upto 1000

160

above 1000

100

Question 2

Can we invest in SME IPO through ASBA ?

Accepted Answer

Yes, ASBA facility is available for online application of both mainline and SME IPOs.

Question 3

Can retail investors apply in SME IPOs?

Accepted Answer

Yes, like Mainline IPOs, there is a portion reserved for retail investors in SME IPOs. However, please note that the minimum investment in SME IPOs is above Rs  1,00,000.

Question 4

Can one apply for multiple IPOs with the same demat account?

Accepted Answer

A demat account is a repository for holding stocks and other instruments in electronic form. You can use the same demat account for  applying for all IPOs. You don't need a separate demat for SME IPO.

Question 5

Whether SME stock gets also listed on BSE/NSE?

Accepted Answer

SME stocks are listed on BSE SME and NSE Emerge. The platforms are run by BSE and NSE and governed as per SEBI regulations.

Question 6

Could you please explain how and who can apply in SME IPOs?

Accepted Answer

You can apply for an SME IPO offline and online. Prerequisites for applying to a SME IPO (offline or online) is a Demat and Bank Account.

How to apply Offline - You need to get the ASBA application form for the IPO. The form is available with banks, brokers, lead managers etc. Fill the form and submit it in the designated bank with the required money. If you are alloted shares,  the shares will be credited to your demat account and if not then refunds will made through a check sent to your address.

How to apply Online - Applying for SME IPO online is easy. You need to have a trading account with a broker. Login to the website, choose the IPO and fill in a few details. Your application amount would be blocked in the bank account linked with your trading account. It will only be debited when you are allotted shares.

Question 7

What is the minimum lot to apply for SME IPOs for retail and HNI categories?

Accepted Answer

In the case of an SME IPO, the minimum lot size is decided based on the offer price of the shares. The below table mentions the price band and applicable market lot size:

Price Band

Minimum Lot Size (No. of Shares)

Up to Rs 14

10000

More than Rs 14 up to Rs 18

8000

More than Rs 18 up to Rs 25

6000

More than Rs 25 up to Rs 35

4000

More than Rs 35 up to Rs 50

3000

More than Rs 50 up to Rs 70

2000

More than Rs 70 up to Rs 90

1600

More than Rs 90 up to Rs 120

1200

More than Rs 120 up to Rs 150

1000

More than Rs 150 up to Rs 180

800

More than Rs 180 up to Rs 250

600

More than Rs 250 up to Rs 350

400

More than Rs 350 up to Rs 500

300

More than Rs 500 up to Rs 600

240

More than Rs 600 up to Rs 750

200

More than Rs 750 up to Rs 1000

160

above Rs 1000

100

Question 8

How to check bidding detail for SME IPO's?

Accepted Answer

Below are the easy steps to check bidding detail of SME IPO's:
BSE SME Exchange

First go to BSESME.com
Click on Public Issues-----> Public issue watch
Click on the IPO name, for which you want to check the bidding.
Click on the 'BSE Bid Detail' button

NSE Emerge Exchange

First go to nseindia.com/emerge
Click on 'Initial Public Offering (IPO)'
Click on View button under 'Bid Details-NSE' column.

Question 9

Is suspended companies are allowed to list on SME Exchange?

Accepted Answer

The suspended companies are not allowed for listing on BSE SME Exchange unless the suspension is revoked and the company is allowed to trade on the Main Board of BSE.

Question 10

What are the capital gain tax benefits by listing on BSE SME?

Accepted Answer

There are immense tax benefits by listing on BSE SME. The unlisted shares will attract short term capital gains (STCG) tax upto 30% and long term capital gains tax (LTCG) of 20%. Whereas in listed securities, the STCG tax is 15% and LTCG tax is nil respectively, provided an investor has paid Securities transaction Tax.

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