PQR Ltd. is listed on SME platform. The company has excellent performance in terms of turnover and profit during last few years. It is interested in migrating to the Main Board. Prepare a note on the same.

Under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, an issuer, whose specified securities are listed on a SME Exchange and whose post issue face value capital is more than ten crore rupees and up to twenty five crore rupees, may migrate: its specified securities to Main Board if its shareholders approve such migration by passing a special resolution through postal ballot to this effect; and if such issuer fulfils the eligibility criteria for listing laid down by the Main Board. However, the special resolution shall be acted upon if and only if the votes cast by shareholders other than promoters in favour of the proposal amount to at least two times the number of votes cast by shareholders other than promoter shareholders against the proposal which means that resolution shall be approved by majority of minority. Where the post issue face value capital of an issuer listed on SME exchange is likely to increase beyond twenty five crore rupees by virtue of any further issue of capital by the issuer by way of rights issue, preferential issue, bonus issue, etc. the issuer shall first migrate its specified securities listed on SME exchange to Main Board and seek listing of specified securities proposed to be issued on the Main Board subject to the fulfilment of the eligibility criteria for listing of specified securities laid down by the Main Board. However, no further issue of capital by the issuer shall be made unless: the shareholders of the issuer have approved the migration by passing a special resolution through postal ballot wherein the votes cast by shareholders other than promoters in favour of the proposal amount to at least two times the number of votes cast by shareholders other than promoter shareholders against the proposal; the issuer has obtained in- principle approval from the Main Board for listing of its entire specified securities on it.