BSE SME Exchange eyes 1 mn listings

The BSE SME Exchange, which is likely to kick-start its operation from September this year, expects to list 1 million potential small and medium enterprises.

“Of the total 26 million enterprises in India, around 1 million units have the potential to get listed on the BSE SME Exchange. Once the exchange gets the Securities Exchange Board of India's approval, we will roll-out operations across the country,” Lakshman Gugulothu, chief executive of the BSE SME Exchange, told mediapersons here on Tuesday.

The initiative is aimed at creating awareness on raising equity capital by SMEs, promoting financial inclusion and enhancing competitiveness among SMEs.

He said the benefits of listing on the SME Exchange were many, like it would help in getting access to funding, better valuation, improvement in debt-equity ratio, bring transparency, help in corporate governance and in getting better visibility among investors.

Currently, the exchange conducts road shows and seminars to educate shareholders, market intermediaries and investors on the importance of listing on the exchange.

It would cover SMEs across sector and cities, and has plans for the Tier II and III cities as well.