Are listed companies eligible to be classified as SMC?
ANo — listed companies are excluded from SMC status
BYes, if turnover below threshold
COnly if listed on regional exchanges
DYes — automatically
Answer & Solution
Correct answer: A. No — listed companies are excluded from SMC status
1. Step 1: SMC definition explicitly excludes companies whose equity or debt securities are listed.
2. Step 2: Listing automatically makes them non-SMC.
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 3 "Applicability of Accounting Standards"_