New Delhi: After seeking permission from Sebi, country’s leading stock exchanges BSE, NSE and MCX-SX now wait for norms to list small and medium enterprises (SMEs) on their platform, sources said.
The Securities and Exchange Board of India (Sebi) has received three applications and is working on the norms for allowing listing of SMEs in stock exchanges, a senior Finance Ministry official today said.
When contacted the promoter of MCX-SX, Financial Technologies India Ltd (FTIL) Group CEO and chairman Jignesh Shah said, “We are eagerly waiting for listing norms. We are committed and capable of providing a stock exchange platform for SMEs,”
There are about 1% of 14 million small and medium enterprises which qualify for listing and another 10% can be motivated, he said on the sidelines of CII a function here.
According to market sources, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have also sought permission for the same.
Currently, companies having issue size of atleast Rs3 crore are allowed to list on the stock exchanges. Amid growing potential in SMEs, Sebi is working on regulatory guidelines with respect to listing and disclosure norms.
According to a Finance Ministry source, Sebi is keen on allowing SMEs on competent stock exchanges rather an exclusive bourse for small and medium enterprises.
Ministry of Micro Small and Medium Enterprises (MSME) Secretary Dinesh Rai said that an exchange designed for the needs of Indian SMEs will pave the path for raising risk capital.
“There are many difficulties for SMEs in accessing the capital markets for raising funds. These include high cost of raising capital and high compliance cost. The SMEs, therefore, need to be provided a framework that would enable them to raise capital quickly and at a low cost,” he said, adding a transparent SME exchange could create a huge market for the SMEs.