5BSE Becomes the Hub for SMEs - ET Dt. 16-04-13

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BSE Becomes the Hub for SMEs – ET dt. 16-04-13 Exchange has a 90% share in the segment and BSE SME index has returned 129 % in a year  PALAK SHAH MUMBAI Investor interest is growing in the small and medium enterprises SME! segment on the BSE"  #early $%& or 1$ out o' 21 companies& on the BSE SME plat'orm are trading a(ove their issue  price and only one has seen an over 10% 'all" )nother company de(uted on the BSE SME  plat'orm on Monday" *n the other hand& BSEs rival #ational Stoc+ Exchange& or #SE& has only three companies on its SME segment and two o' them are trading (elow their issue price" ,he third was listed last -riday" ,he SME segment on BSE has emerged as the leading plat'orm and the exchange wants to (u ild on this success& said )shish .hauhan& BSEs chie' executive o''icer and managing director"BSE has a 90% mar+et share in the segment and the S/ BSE SME index& launched in )ugust 2012& has given 129% return over the past one year" ,he index has risen 'rom 100 to 229 (y the end o' last wee+& which shows that the mar+et per'ormance o' the SME 'irms listed on BSE is ro(ust& say mar+et players" )n #SE o ''icial said& e have (een encouraging SME companies to opt 'or voluntary grading (y a reputed credit rating agency" ,here is also an e''ort to (uild an ecosystem 'or the segment" *n the ris+s associated with trading in SME companies& BSE says they h ave a minimum lot sie o'"1 la+h and& owing to this& only serious players with sound understanding o' the mar+et will invest in these companies" ,he list o' SME companies preparing 'or a listing on BSE is long and at least six o' the m are in the  process o' launching an I*" SMEs& which are large 3o( creators& need encouragement& and listing is an additional 'ramewor+ (y which companies can raise money to improve their 'inancial ratio& .hauhan said"M.4 S4 too had (ig plans 'or the SME segment" It had created a hu(and5spo+e model 'or SMEs (y launching we(sites in various regional languages" *n its part&  #SE has a tie5up with SI6BI 'or the SME segment& which is crucial consideri ng that the 'inance minister had enhanced the re'inancing capa(ility o' SI6BI to"10&000 crore per year 'rom"7&000 crore a year ,his will help SI6BI (uild the (alance sheets o' SMEs (e'ore getting them listed on  #SE"SMEs can raise"7 la+h to"7 crore and those with a post5issue capital o' (etween"70 la+h and"10 crore can list on the SME plat'orm" Sebi Forms Pae! to Boost "isti# ,he Securities and Exchange Board o' India has 'ormed a committee to recommend ways to  (oost listing o' SMEs and the mem(ers o' the panel met 'or the 'ir st time on )pril 9",he committee includes 8ari 'rom #SE and )3ay ,ha+ur 'rom BSE apart 'rom Saurav Shrivastava and )vinash :upta 'rom 6eloitte and ; )garwal 'rom the -ederation o' Indian Macro and Small / Medium Enterprises" *ur Bureau

Transcript of 5BSE Becomes the Hub for SMEs - ET Dt. 16-04-13

 

BSE Becomes the Hub for SMEs – ET dt. 16-04-13

Exchange has a 90% share in the segment and BSE SME index has returned 129 % in a year

 PALAK SHAH MUMBAI

Investor interest is growing in the small and medium enterprises SME! segment on the BSE"

 #early $%& or 1$ out o' 21 companies& on the BSE SME plat'orm are trading a(ove their issue

 price and only one has seen an over 10% 'all" )nother company de(uted on the BSE SME

 plat'orm on Monday" *n the other hand& BSEs rival #ational Stoc+ Exchange& or #SE& has only

three companies on its SME segment and two o' them are trading (elow their issue price" ,he

third was listed last -riday" ,he SME segment on BSE has emerged as the leading plat'orm and

the exchange wants to (uild on this success& said )shish .hauhan& BSEs chie' executive o''icer

and managing director"BSE has a 90% mar+et share in the segment and the S/ BSE SME

index& launched in )ugust 2012& has given 129% return over the past one year" ,he index has

risen 'rom 100 to 229 (y the end o' last wee+& which shows that the mar+et per'ormance o' the

SME 'irms listed on BSE is ro(ust& say mar+et players" )n #SE o''icial said& e have (een

encouraging SME companies to opt 'or voluntary grading (y a reputed credit rating agency"

,here is also an e''ort to (uild an ecosystem 'or the segment" *n the ris+s associated with trading

in SME companies& BSE says they have a minimum lot sie o'"1 la+h and& owing to this& only

serious players with sound understanding o' the mar+et will invest in these companies" ,he list

o' SME companies preparing 'or a listing on BSE is long and at least six o' them are in the

 process o' launching an I*" SMEs& which are large 3o( creators& need encouragement& and

listing is an additional 'ramewor+ (y which companies can raise money to improve their

'inancial ratio& .hauhan said"M.4 S4 too had (ig plans 'or the SME segment" It had created a

hu(and5spo+e model 'or SMEs (y launching we(sites in various regional languages" *n its part&

 #SE has a tie5up with SI6BI 'or the SME segment& which is crucial considering that the 'inance

minister had enhanced the re'inancing capa(ility o' SI6BI to"10&000 crore per year 'rom"7&000

crore a year ,his will help SI6BI (uild the (alance sheets o' SMEs (e'ore getting them listed on

 #SE"SMEs can raise"7 la+h to"7 crore and those with a post5issue capital o' (etween"70 la+h

and"10 crore can list on the SME plat'orm"

Sebi Forms Pae! to Boost "isti#

,he Securities and Exchange Board o' India has 'ormed a committee to recommend ways to

 (oost listing o' SMEs and the mem(ers o' the panel met 'or the 'irst time on )pril 9",he

committee includes 8ari 'rom #SE and )3ay ,ha+ur 'rom BSE apart 'rom Saurav Shrivastava

and )vinash :upta 'rom 6eloitte and ; )garwal 'rom the -ederation o' Indian Macro and

Small / Medium Enterprises" *ur Bureau