Emerge Platform (SME)
Emerge is NSE's SME platform, designed to let small and medium enterprises raise capital from the public while listing on a recognised exchange. The exam tests platform eligibility, IPO mechanics, market making and investor limits.
Core rules
- Emerge is a platform of NSE, not a separate stock exchange.
- It is meant for SMEs that fit SEBI and NSE eligibility thresholds; disclosure and due diligence are lighter than the main board but still mandatory.
- SME IPOs may be fixed-price or book-built; allotment is in market lots.
- A market maker is required for three years to provide liquidity.
- The minimum application size for an SME IPO is ₹2 lakh, so retail applications below that value are invalid.
- Promoter and market-maker shares carry lock-in; migration to the main board is possible after meeting prescribed criteria.
Worked example
An SME issue is priced at ₹100 and the market lot is 1,600 shares. One lot is worth ₹1,60,000, which is below the ₹2 lakh minimum. You must apply for at least two lots: 3,200 × ₹100 = ₹3,20,000. The reasoning: the minimum is an application value, not a number of lots; round up to the next whole lot.
Traps that cost marks
- Applying with ₹2 lakh as if it were the maximum retail limit; for SME IPOs it is the minimum.
- Assuming the main-board retail cap applies unchanged.
- Forgetting the three-year market-making obligation.
- Treating Emerge as a separate exchange rather than an NSE platform.