SME Market-Maker Obligation Calculator
Every SME IPO must appoint a designated market maker under SEBI ICDR Regulation 261 — a mandatory liquidity provider that mainboard IPOs don't require. Enter (or pick) an IPO's issue size to see the reserved inventory, alongside the fixed tenure and quote-time rules.
Market-Maker Inventory Reserved
₹1.50 Cr
SEBI ICDR Regulation 261 requires 5% of the IPO issue size to be set aside as the designated market maker's initial inventory at allotment.
Obligation Period
3 years
From the date of listing
Minimum Quote Time
75%
Of trading hours, both bid and ask
Concentration Limit
15%
Max share of an exchange's SME companies per market maker
Sourced from SEBI ICDR Regulation 261 (market making for SME issues) and NSE Circular 50/2026 (market-maker concentration limit). Exact obligations can be revised by SEBI/exchange circular — verify against the specific IPO's RHP and the market maker agreement before relying on this for a real listing.
How the SME Market-Maker Obligation Calculator works
SEBI ICDR Regulation 261 requires every SME issuer to appoint a registered market maker for a minimum of 3 years from the date of listing. The market maker must provide two-way (buy and sell) quotes for at least 75% of trading hours, and 5% of the IPO's issue size is reserved as the market maker's initial inventory at allotment, so it has stock to sell against incoming buy orders from day one. Per NSE Circular 50/2026, a single market maker cannot serve more than 15% of the total SME companies on an exchange where market making is currently in force — a concentration limit meant to prevent one firm from becoming a systemic single point of failure for SME liquidity.
This obligation exists because SME stocks typically see far lower natural trading volume than mainboard stocks — without a mandated liquidity provider, many SME shares would trade too thinly for investors to reliably enter or exit positions.
Disclaimer: This calculator is for educational purposes only and does not constitute investment advice. Always read the Red Herring Prospectus and verify current rates before applying for any IPO.