BSE hopes to kickstart SME exchange Sep onwards

The country's premier bourse Bombay Stock Exchange (BSE) is hopeful of launching its dedicated small-and-medium-enterprises (SME) exchange by September, 2011 onwards, a senior official said today.

"BSE SME platform is expected to be operational September 2011 onwards," BSE CEO (SME Exchange) Laksman Gurulothu told PTI on sidelines of seminar on 'Raising of Equity and Listing of SMEs on BSE SME Exchange' here.

On May 25, Sebi had given in-principle nod to the Asia's older bourse's proposal to launch a dedicated SME platform.

With a view to let smaller firms access equity capital without the existing cumbersome process, the Sebi had last year come out with guidelines for dedicated SME exchanges.

Gurulothu said listing fees at the SME exchange is 50 per cent of BSE and companies are not required for announcing quarterly results but go for half-yearly disclosures only.

"100 per cent underwriting of the issue by the Merchant Banker and shall underwrite 15 per cent in their own account. The Merchant Banker shall be responsible for market making for a minimum period of three years," he added.

Gurulothu further said all existing trading members would be eligible to participate in SME exchange without any further registration and by default members, adding, "FII, Venture Capital (VC) can exit SME whenever they want".

Asked whether Sebi approval is required to bring IPO, he said, "Sebi approval is not required to bring IPO in SME."