BSE issues additional norms for SME ITP platform

The BSE today asked trading members to ensure that 10 per cent of the transaction value is available as deposits with regard to listing of SMEs on institutional trading platform (ITP).
The bourse said that brokers have to ensure that "10 per cent of the transaction value is available as deposits with the exchange or clearing corporation."
In case a member fails to fulfil his settlement obligation pertaining to buy or sell trade, then the concerned ITP trade would stand closed out and a charge of 10 per cent of the obligation amount unfulfilled by the broker would be levied on him, the exchange said.

Out of this close out charge (10 per cent), half would be paid to the counter member to the trade and the balance would be retained by clearing corporation, it added.
Earlier this month, BSE had launched the "BSE SME ITP" segment to facilitate startup firms and small and medium enterprises (SMEs) to list without an initial public offer (IPO).
In addition to allowing SMEs and startup companies to raise capital, the ITP platform provides for an easier entry and exit options for informed investors like angel investors, VCFs and PEs, among others.
The "BSE SME ITP" platform offers better visibility and wider investor base while offering tax benefits to long-term investors.