Mumbai: The markets regulator Securities and Exchange Board of India (Sebi) said on Monday it does not require setting up a separate exchange for small and medium enterprises (SME).
“It doesn’t have to be separate exchange (for SMEs),” Sebi chairman CB Bhave told reporters after a board meeting.
The paid-up capital of SME would be capped at Rs250 million, Bhave said, adding small and medium firms would require their issues to be fully underwritten.
Companies listed on the SME segment would be exempted from eligibility norms applicable for IPOs and FPOs (follow on public offers) prescribed in the Sebi regulations, Bhave said.
He also said the minimum application size for an investor subscribing to an IPO for a SME would be Rs100,000.
“This is a process which is not going to happen tomorrow, but we are going to make the atmosphere conducive for it,” Bhave said.