Shreni Shares must quote 75% for three years on BSE SME

Shreni Shares Limited must provide eligible two-way quotes for 75% of normal-market trading time in each session for at least three years after listing on BSE SME. The arrangement requires a minimum quote depth of Rs 1 lakh and is initially supported by a reservation of up to 2.80 lakh equity shares from an issue of up to 55.50 lakh shares.

What must Shreni Shares do after listing on BSE SME?

Shreni Shares must provide eligible two-way quotes for 75% of market time in every normal-market trading session from the listing date. Two-way quotes are quoted buying and selling prices for the shares, and BSE will monitor the 75% presence requirement. Shreni Shares must also notify BSE in advance of every blackout period in which it will not issue quotes.

The compulsory market-making arrangement runs for a minimum of three years from listing, under an agreement dated August 14, 2026 between the company, the Book Running Lead Manager and Shreni Shares. The duration may change if the Securities and Exchange Board of India (SEBI) amends the applicable Issue of Capital and Disclosure Requirements (ICDR) Regulations. Shreni Shares is registered with BSE and is the sole market maker named at this stage.

Shreni Shares must guarantee execution at the quoted price and quantity. That obligation means a displayed quote must be executable for its stated terms, rather than merely indicating an interest in trading. BSE will monitor obligations in real time and may impose monetary penalties or suspend market-making activities or trading membership for exceptions or non-compliance.

How much BSE SME market maker depth must Shreni Shares provide?

Shreni Shares must maintain a minimum quote depth of Rs 1 lakh. Quote depth is the value available at the quoted price, while the spread is the permitted difference linked to the sale price. The prospectus does not state the number of shares corresponding to Rs 1 lakh because the issue price and minimum lot size are not finalised.

Investors whose holdings are worth less than Rs 1 lakh may sell to Shreni Shares if they sell their entire holding in one lot and provide a declaration to their selling broker. This provision applies to a complete holding in that scrip, not to a partial sale below the standard Rs 1 lakh quote-depth level. The mechanism therefore permits an exit for smaller holders subject to the one-lot and declaration conditions.

The BSE SME framework also specifies proposed spreads across four market-price slabs. The proposed spread is 9% for shares priced up to Rs 50 and 5% for shares priced above Rs 100, so the allowed quoted range changes with the applicable price category.

When is Shreni Shares allowed to stop quoting?

Shreni Shares may be exempt from providing quotes after the first three months of the market-making period if its holding reaches 20% of the issue size. The 20% calculation includes shares required to be allotted under the issue, but excludes any shares allotted to Shreni Shares above the specified reservation. The exemption therefore depends on the market maker reaching the stated inventory threshold after listing.

Shreni Shares must resume two-way quotes when its holding falls to 19% of the issue size. The difference between the 20% exemption trigger and the 19% resumption trigger is one percentage point. There is no downside inventory threshold or exemption, although BSE may inform SEBI after verification if Shreni Shares exhausts its inventory through market making.

Shreni Shares may also be permitted to withdraw temporarily or fully in special circumstances, including system problems or other problems. Controllable reasons require BSE's prior approval, while non-controllable reasons do not require prior approval; BSE's classification is final. These stated exceptions mean the 75% requirement is monitored alongside inventory and operational conditions.

How are Shreni Shares' shares and obligations structured?

Shreni Shares has a reservation of up to 2.80 lakh equity shares under the Market Maker Reservation Portion, compared with an overall issue of up to 55.50 lakh equity shares. Regulation 261(4) of the SEBI ICDR Regulations requires the company, in consultation with the Book Running Lead Manager, to allot at least 5% of the issue to the market maker. The 2.80 lakh-share reservation is included in the underwriter's stated commitment for the issue.

Smart Horizon Capital Advisors Private Limited has underwritten 100% of the issue under an underwriting agreement dated August 14, 2026. The prospectus states that the Book Running Lead Manager must underwrite at least 15% of the total issue size and must fulfil obligations if another underwriter fails to do so. Underwriting addresses subscription obligations, whereas the market-maker reservation establishes an initial share allocation for post-listing quotations.

Under BSE Circular 20190718-28 dated July 18, 2019, Shreni Shares must confirm it has sufficient net worth to discharge its market-making obligations. During the compulsory period, Shreni Shares cannot buy equity shares from promoters, promoter-group members or persons who acquired shares from those groups. The restriction applies specifically to market-maker purchases during the three-year arrangement.

What trading controls apply from the first listing day?

The first listing day will begin with a 60-minute pre-opening call auction from 9:00 a.m. to 10:00 a.m. It includes 45 minutes for order entry, modification and cancellation, 10 minutes for order matching and trade confirmation, and a five-minute buffer before the normal trading session. If an equilibrium price is discovered, the normal-session price band will be 5% of that price; otherwise, it will be 5% of the issue price.

The equity shares will remain in the Trade for Trade segment for 10 days from listing. BSE SME will apply the margins applicable on the BSE Main Board, including mark-to-market, Value-at-Risk, extreme-loss, special margins and base minimum capital. BSE may impose further margins when it considers them necessary.

Shreni Shares may terminate the arrangement by giving one month's notice to the Book Running Lead Manager or on mutually acceptable terms. If termination occurs before the compulsory period ends, the Book Running Lead Manager must arrange a replacement during the notice period and before Shreni Shares is released. The company and the Book Running Lead Manager may appoint additional or replacement market makers, but the total cannot exceed five at any point.

Conclusion

The arrangement gives Shreni Shares a defined post-listing role rather than creating an unrestricted guarantee of trading liquidity. Its obligation combines two-way quotes for 75% of each normal session, guaranteed execution at quoted price and quantity, a Rs 1 lakh minimum depth and a minimum three-year market-making period.

The next disclosed matters to watch are the final issue price and minimum lot size, which will determine the number of shares represented by the Rs 1 lakh depth requirement. After the first three months, Shreni Shares reaching 20% of issue-size inventory may permit an exemption, while a decline to 19% requires quotes to resume; any early termination must be followed by a replacement arrangement.