BSE, Sebi to meet on launch of SME exchange

The country's premier bourse Bombay Stock Exchange (BSE), which is awaiting a final approval from the Sebi for launching its SME exchange, will meet the regulator on July 18 for seeking clarity on some regulatory issues.

"We will be meeting with Sebi [on July 18] for clarity of a few guidelines on SME exchange," BSE SME exchange CEO Lakshman Gugulothu told reporters on the sidelines of ICC organised MSME seminar.

Among the issues in which BSE wants greater clarity includes the role of sub-syndicators, and measures to be taken in the event of the prescribed 5% of the paid-up share getting exhausted with the market-maker and the clarification on Sebi's terminology "exceptional handling".

Meanwhile, Gugulothu said BSE needed the final approval at least 45-60 days prior to the target launch of the exchange in September.

"We want to begin the SME exchange with few companies listed in the exchange and for that there will be public offers of SME companies," he said.

BSE will begin taking public issue applications once it gets the final approval from Sebi.

Gugulothu said there were a few broking houses who had also shown interest in investing in the SME companies planning to get listed in the new platform of the bourse.