The National Stock Exchange (NSE) is keen to set up a separate platform to cater to small and medium enterprises (SME) within the next two to three months. Earlier, the market regulator Securities and Exchange Board of India (SEBI) had granted the Bombay Stock Exchange (BSE) and the NSE the nod to set up SME platforms. Last year, SEBI had come out with a format of guidelines which were focused for small and medium enterprises in India.
More over SEBI has relaxed rules which are applicable for SMEs to list themselves on such exchanges. However, it allows companies to shun the practice of sending full annual reports and reporting quarterly numbers. Many SMEs have shown interest in this revolutionary format of the SME stock exchange. It is a system which has to develop. India is a huge country and there are mega numbers of SMEs. There is a surplus of capital flowing into this sector now. There are larger numbers of investors who want to take risks in smaller companies, which can get listed in the SME exchange.
