Despite the hype that surrounds India’s first SME exchange to be launched by next month, analysts have voiced their concern that the bourse may not be able to generate sufficient interest from investors. The size of the funds being smaller and the risk involved higher, brokers and other market entities have shown little inclination to trade in the SME exchange. However, the Bombay Stock Exchange (BSE) assured the government recently that the SME exchange will receive sufficient interest from market players. To break new ground both common investors and major players will need to be educated better about the SME exchange. While BSE has conducted nation wide seminars to educate investors and other market participants about the new bourse, the concept is yet to create a buzz in the capital market of India. India has 40,000 firms that are qualified to participate in the SME exchange.
