BSE mobilising SMEs for Exchange

Bombay Stock Exchange (BSE) is mobilising the small and medium enterprises (SMEs) in India for its SME Exchange, which is awaiting the final approval of market regulator Securities and Exchange Board of India (SEBI).

As a prelude to its launch, which is likely next month, BSE has undertaken a multi-pronged activity to create awareness about the platform and the benefits that would accrue to the SMEs on listing.

BSE is holding seminars across India in consort with industry chambers, associations and trade bodies.

In this series, SME joined hands with Confederation of Indian Industry and held an interactive session in Lucknow on Friday on ‘Raising Equity Capital through BSE SME Platform. BSE is planning to hold similar sessions in UP’s Kanpur and Noida also.

Uttar Pradesh has a large number of SMEs, estimated at over 1.2 million and as such there is tremendous scope of wealth creation in the sector.

The Lucknow session was addressed by BSE SME Exchange CEO Lakshman Gugulothu, besides representatives from Central Depository Services Limited (CDSL), SPFL Securities and Karvy.

“We have already held about 25 such sessions in 10 Indian states and 30 more are lined up in coming days,” Gugulothu told Business Standard. This way, BSE expects to cover major SME clusters spread over 20 states.

He noted BSE SME Exchange would be a good platform for entrepreneurs to raise equity capital for the growth and expansion of their enterprises.

The Exchange would provide opportunity to investors to identify and invest in good companies at an early stage.

This would help unleash the valuation of company and create wealth for all stakeholders, including investors, besides income tax benefits and facility to exit at any point of time.