The Hindu Business Line : SME exchange by year-end

Kolkata, Aug. 19 The much-awaited SME exchange may be launched within this calendar year, according to Mr S. Ray, Executive Director, Securities and Exchange Board of India.

“We are in active stage of development for the launch of an exchange dedicated to the small and medium enterprises (SMEs),” he said on the sidelines of a seminar organised by the Confederation of Indian Industry recently. The cap on paid-up equity capital for participating in the exchange may be fixed at around Rs 10 crore, he added. He, however, did not clarify if the exchange would be a platform within existing exchanges or be floated as a separate exchange.

Disclosure norms

The disclosure norms for the exchange, he pointed out, would be more stringent than AIM, the international platform for growing companies under the London Stock Exchange.

Unlike AIM, the exchange would focus on retail investors as well, he added. The SME exchange is expected to be formed in line with AIM.

Addressing the seminar entitled ‘Alternative avenues to SME Financing’, Mr Ray said SEBI is working on several proposals to facilitate financing SMEs.

Steps can also be taken to reduce cost for SMEs by launching public issues electronically and allowing SMEs to declare half-yearly results instead of quarterly results, he added.

Mr Ramesh Dalta, Chairman, CII National Micro, Small and Medium Enterprises (MSME) Council, said CII is working on a three-year SME programme to develop 15 SMEs to international standards.

The programme, expected to be launched in September end would be formulated jointly by IIT Chennai, IIM Calcutta and a Japanese consultant Shobishiba, he said.

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