Review of Guidelines for Market Maker in SME Segment
BSE notice 20260522-18 · 25 May 2026
Official record
Open source pageSummary
Check the official recordWhat changed
BSE revises the net worth requirements for Market Makers on the SME platform. Member brokers must maintain a minimum net worth of INR 3 crores to act as a Market Maker for the first 5 companies. Brokers may add 5 companies for every additional INR 1 crore of net worth. The restriction on the number of companies ends when the net worth reaches INR 25 crores. Market Makers cannot exceed a limit of 15 percent of total SME companies or 50 companies, whichever is higher. Existing Market Makers have 6 months to comply with these new requirements. New registrations must meet these criteria immediately. Book Running Lead Managers and SME companies must verify compliance at the time of appointment.
What you must do
- Ensure compliance with net worth criteria at the time of appointment of the Market Maker.
- Stop undertaking market-making obligations for new SME companies if net worth criteria are not met.
Key dates
Document text
NOTICE
| Notice No. | 20260522-18 |
|---|---|
| Notice Date | 22 May 2026 |
| Category | Others |
| Segment | SME |
| Department | Membership Compliance |
| Subject | Review of Guidelines for Market Maker in SME Segment |
| Attachments | No Attachment |
This is with reference to Exchange notice no. 20120106-16 dated January 06, 2012 & 20190718-28 dated July 18, 2019, regarding Networth requirement for Market Makers on SME Platform.
The net worth criteria applicable to Market Makers has been reviewed in consultation with ISF & Exchanges, and in accordance with the guidance received from SEBI, the revised net worth criteria applicable to Market Makers is provided below:
- The number of SME Companies in which a Market Maker may participate in the SME platform of a Stock Exchange, shall be as per the following provisions: a) A minimum networth of INR 3 crores for member brokers to act as Market Maker for the first 5 companies. b) For every incremental networth of INR 1 crore, market making in 5 additional SME Companies may be allowed. c) Upon attaining a networth of INR 25 crores or more, the networth based restriction on market making of maximum number of SME Companies shall not apply. d) A Market Maker shall not undertake market-making activity, per Exchange, of more than 15% of total SME Companies in which market making is in progress or 50 SME Companies, whichever is higher.
Based on the above the revised grid of minimum networth requirement is as follows:
| Revised grid of minimum networth requirement |
|---|
| Number of SME companies | Minimum Networth (in Crs.) for market making |
|---|---|
| 0 to 5 | 3 |
| 6 to 10 | 4 |
| 11 to 15 | 5 |
| 16 to 20 | 6 |
| 21 to 25 | 7 |
| 26 to 30 | 8 |
| 31 to 35 | 9 |
| 36 to 40 | 10 |
| 41 to 45 | 11 |
| 46 to 50 | 12 |
| 51 to 55 | 13 |
| 56 to 60 | 14 |
| 61 to 65 | 15 |
| 66 to 70 | 16 |
| 71 to 75 | 17 |
| 76 to 80 | 18 |
| 81 to 85 | 19 |
| 86 to 90 | 20 |
| 91 to 95 | 21 |
| 96 to 100 | 22 |
| 101 to 105 | 23 |
| 106 to 110 | 24 |
| Unlimited | 25 and above |
- Compliance with the criteria at point 1 above shall be ensured at the time of appointment of Market Maker by the Book Running Lead Manager (BRLM) and SME Company.
- If a Market Maker fails to meet the networth criteria, the Market Maker shall not undertake market-making obligation for any new SME Company, until the Market Maker meets the requisite networth criteria again. However, the Market Maker may continue market-making obligations for existing SME companies.
- Upon ascertaining that the Market Maker has failed to meet the networth criteria, Stock Exchange shall intimate the same to the respective BRLMs and SME Companies, which may reconsider their market-making agreements with the said Market Maker.
- Further, as defined in the SEBI Master Circular SEBI/HO/MRD-PoD2/CIR/P/2024/00181 dated December 30,2024, there should NOT be more than five Market Makers for any SME company.
The revised networth criteria mentioned above shall be applicable with immediate effect for any new registration of member as SME market maker. Members who are already registered as SME market makers can continue market making for existing scrips as per existing networth criteria till 6 months from the date of this circular. Six months after the date of this circular, i.e. November 21,2026, revised networth criteria shall be applicable to existing SME market makers as well.
For any clarifications, regarding SME Market Maker registration/Networth please write to membership.ops@bseindia.com and for other clarifications please write to Bsesme.info@bseindia.com
For and on behalf of BSE Ltd.
Jinesh Shah Deputy Vice President Membership
Bina Khaneria Manager Membership
Source details
- Source
- BSE Ltd (Bombay Stock Exchange)
- Type
- notice
- Published by source
- 25 May 2026
- Document number
- 20260522-18
- Issuing division
- Membership Compliance
- Effective date
- 22 May 2026
- Coverage area
- securities