SEBI mulls exchange for SMEs
Securities and Exchange Board of India (SEBI) is planning an exclusive trading platform for the small and medium companies and has already formed an internal committee to implement it.
By PTI |
KOLKATA: Securities and Exchange Board of India (SEBI) is planning an exclusive trading platform for the small and medium companies and has already formed an internal committee to implement it.
"We are planning to form a separate trading platform for the SMEs. We have already formed a small in-house committee to study and prepare roadmap for the same," SEBI chairman M Damodaran told media during his recent visit to the city.
The new trading platform for the small and medium companies was under strong consideration by the market regulator as the advantages offered by it will help formulation of a more efficient regulation, SEBI sources said.
Moreover, it will also help SMEs to shop in the overseas markets like Luxembourg and London's AIM market to raise their resources. Merchant banking circle believe that SEBI will offer some relaxations in terms and disclosures to SMEs planning to hit the market in comparison to stringent regulations for stocks listed on the NSE and BSE.
"Unless, SEBI offers some advantages for smaller companies for listing on the new platform, it does not make sense," a merchant banker said. "Already, OTC exchange has failed and the BSE Indonext platform also failed to achieve desired result," he added.
ADVERTISEMENT
In response to failure of OTC, Damodaran said the time was not correct for such market and now India is matured for such a concept. The BSE Indonext was introduced in association with Federation of Indian Stock Exchanges (FISE) and was launched by the Union Finance Minister P Chidambarm early last year.FISE is a body of 20 regional bourses. But, Indonext could not be launched in all the bourses. BSE officials did not comment on the performance of Indonext after a year of launch when contacted. After two failed ventures for SMEs, it is to be seen how far SEBI succeeds in creating a new one.
Meanwhile, SEBI had said they were planning to bring other massive changes in the capital market like introduction of IDR, debt market and dedicated fund for investor protection. IDRs will allow a foreign company operating in India to tap the Indian capital market.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
