subject: Need For Separate Sme Stock Exchange, Says Fm [print this page] Finance minister, Pranab Mukherjee, has once again reiterated the need to establish a separate trading platform for SMEs in India, while addressing the speaker at Rajya Sabha.
Speaking at the Upper House of the Parliament, Mr Mukherjee stated, Given that the criteria to get listed on a stock exchange is quite different for SMEs from the ones already listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), there is a need for separate stock exchange for SMEs.
Although last year, the Securities and Exchange Board of India (SEBI) announced norms to set up a separate stock exchange for SMEs, it changed its stance in November this year.
After the boards meeting, CB Bhave, chairman of SEBI, ruled out the possibility of setting up a separate exchange platform for SMEs. The capital market regulator decided to facilitate the establishment of a separate stock trading platform in the existing stock exchanges dedicated to SMEs.
SEBIs move to set up separate SME exchanges in the existing stock exchanges is expected to make adequate equity capital available at lower cost to SMEs, said Vishal Bajaj, senior analyst at RiddhiSiddhi Securities, a small-sized securities trading firm in Jaipur.
The FM revealed that no timeline has been set by SEBI to establish a separate stock exchange for SMEs.
by: David Parks
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