Bombay Stock Exchange said it was open to idea of separate platform for Small and Medium enterprises to tap the capital markets.
“We can always explore the possibilities (for separate platform) for the SMEs because the SMEs have a different need and one has to take that into consideration,” BSE CEO and MD Rajnikant Patel told PTI.
“Can you charge the same listing fees that is charged by the national level exchanges because SME are a small capital base company and they need differential pricing,” he said
There is a strong case for a separate trading platform for SMEs to enable them raise risk capital.
As stricter corporate governace norms for trading on the national level bourses BSE and NSE were required, it was increasingly becoming difficult to tap them.
Small and medium enterprises are coming in hordes to raise money from the capital market but stock exchanges cannot afford to dilute compliance norms for them.
London Stock Exchange has received very good response by setting up Alternative Investment Market (AIM) for medium and small companies where regulatory norms are diluted.
“This is one issue and challenge that one has to find a solution. SMEs need exposure to capital market in order to survive is a very noble idea and allow them the access to the risk capital but we also need a compliance level which may or may not be easy to comply,” Patel said.
“At the same time exchanges cannot dilute compliance standards for the sake of these companies which are difficult for them to adopt as it is expensive,” BSE CEO said. SMEs have small business revenue generation and it is difficult to match with the demands of a highly regulated market.