Date:26/10/2007 URL: http://www.thehindubusinessline.com/2007/10/26/stories/2007102652471600.htm

Back SEBI moots separate exchange for SMEs

No proposal to revive OTCEI

Our Bureau

Mumbai, Oct. 25

The Securities and Exchange Board of India has cleared the proposal for a separate stock market for listing Small and Medium Companies (SMEs).

This was announced by the SEBI Chairman Mr M. Damodaran after the SEBI Board meeting here on Thursday.

SEBI would select one entity which would satisfy its eligibility criteria.

There is no proposal for revamp of the Over The Counter Exchange of India (OTCEI), he added. In fact, the proposal for a separate trading platform for SMEs has been mooted sometime back.

The Bombay Stock Exchange had already showed interest in setting up a separate platform for SMEs. However, there has been some opposition to the proposal on the ground that SMEs can get listed on regional stock exchanges.

Win-win

Mr Sanjay Sinha, Head-Equity, SBI Mutual Fund felt that there is a rising interest among investors in small cap and mid-cap industries for setting up of a stock exchange for SME’s, which will facilitate the latter to raise capital and is a ‘win-win’ for both promoters and investors.

The SEBI Board also took note of the growth in trading volumes in recent times at the two national stock exchanges in the country. With the growth of trading volumes, Mr Damodaran hoped that access to long-term money for long gestation projects would become easier.