BSE Granted ‘in-principle’ Approval by SEBI for Launching SME Exchange
Bombay Stock Exchange Ltd. received an ‘in-principle’ approval May 25 from the capital market regulator SEBI (Securities and Exchange Board of India) for launching the SME Exchange. In a latest development, coming on the heels of a series of positive moves for market participants and investors ranging from Delivery-based derivatives, SOR and web-based IPO services and Mobile trading among others, the BSE is now gearing up for its latest venture in an emerging market segment.
Speaking on the development, Madhu Kannan, MD & CEO of the Bombay Stock Exchange said, “We are glad to have received an in-principle approval from SEBI to launch the new exchange for Small and Medium enterprises. This is part of our strategy to offer superior services and products to investors in India. It also ties up well with the governmental agenda of greater financial inclusion and allowing promising enterprises of the future to access retail capital. We look forward to the success of all stakeholders of the soon-to-be launched SME exchange and will continue to work closely with all of them to ensure a smooth and successful roll-out of the SME exchange.”
Over the last six months, the BSE SME Exchange has been organizing many road shows along with Channel Partners at various locations to sensitize the Small and Medium Enterprises about BSE SME Exchange. Televised programmes on the subject by BSE, have aided evangelizing the efforts to a wider audience of such enterprises with desire and potential to access capital from the market.
The BSE SME Exchange has been taking feedback from stakeholders such as investors, small and medium companies, merchant bankers and member brokers, who play a critical role in the functionality of the SME Exchange.
With over 136 years of trading history and 5000+ listed companies, the BSE has been a well-established platform for raising capital. Recent other moves to drive greater financial inclusion like slashing membership rates have seen very positive reactions with close to 550 new members signing up. The SME exchange will provide a major boost to reaching out to smaller investors and smaller enterprises.
The imminent launch of the SME exchange will be provide several benefits to all participants that include, but are not limited to; access to capital, future financing opportunities, increased visibility among investors, venture capital, liquidity for shareholders and encouraging entrepreneurship.