by Rajen KumarIndia's Manufacturing Muddle
What holds Indias manufacturing sector at the back foot? Why the sector has failed to emerge from the shadow of a strong service sector which has recorded a creditable growth in the...
Special ReportsMar 2014
When you have just decided to go ahead and chase your dream of higher studies, the one you had sidelined for quite some time now, you realize the road ahead is not so...
A Note on SME LISTING
he leading two stock exchange of India i.e. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have begun their SME listing platforms. While BSE SME Exchange began its operation in March, 2012, NSE's SME exchange titled EMERGE commenced operations in September, 2012. Working under the guidelines put forward in 2010 by the Prime Minister's Task Force, SEBI had been able to put across regulatory framework for the launch of SME platform on recognized stock exchange.
Equity Funding Option Through SME Exchange
Four already listed, 10 offer documents filed and many more in the pipeline. Though these figures seems to be minuscule in a 3.11 crore population of SME entities in India, a critical analysis of offer documents of these entities filed on newly introduced SME Exchange flashes a ray of hope for many emerging corporate.
SME Exchange Launched Listed SMEs will Unlock Their Wealth: CEO Lakshman Gugulothu
“The SME exchange hopes to list 10 companies in FY12 and nearly 100 companies on its trading platform in the next 18 months,” BSE managing director and chief executive Madhu Kannan said after inaugurating the SME Exchange.
Mr. Lakshman Gugulotha, CEO, SME Exchange confirms: SEBI Approval comes finally - Docks Cleared for SME Exchange
A Vision on Wealth Creation
BSE has a vision on wealth creation by the SMEs through inclusive economic growth. We are working with a mission to provide the world class platform for the SMEs and the investors to come together and raise the equity capital. BSE SME Exchange provides a great opportunity to the entrepreneurs to raise the equity capital for the growth and expansion of SMEs. It also provides the immense opportunity to the investors to identify and invest in the good SME companies at early stage. It will help unleash the valuation of the company and in the process create wealth for all the stakeholders including all the investors, besides considerable long term capital gains tax benefits and facility to exit at any point of time.
Creating Market Equilibrium
An experiment of the capital markets in the right direction providing a platform for Capital raising in the form of equity for the deserving SMEs. We further appreciate the tremendous efforts put in by the regulator SEBI and BSE SME exchange to make it happen.
A Good Development
As per reports a special exchange for small and medium enterprises (SMEs) may start functioning in the near future. It will have separate Rules and Regulations to help Small and Medium Enterprises (SMEs) as quite often they are not able to raise required funds –Capital- for themselves. The purpose of this separate special exchange is to help them in this objective.
Level Playing Field for Small Entrepreneurship
The Dream of creation of a specialized SME Exchange Platform for providing much needed impetus to SME Entrepreneurs for their access to risk capital finally appearing to become reality. With Bombay Stock Exchange (BSE) & National Stock Exchange(NSE) becoming the first exchanges being granted an in-principle approval for offering a separate SME Trading Platform post SEBI's announcement of Regulatory Framework in May, 2010, the countdown of listing of first SME company is intensifying. With positive hope and increasing expectations about SME Exchange on one side versus emanating apprehensions about their successful operation on the other side – the debate is as HOT as it gets! The growth chances of a successful business enterprise & creation of faster value to its stakeholders lies in its ability to quickly transfer its risk capital from one hand to another through participation of large investors in it's growth prospects, on an ongoing basis.
Listed Companies to Attract Secondary Investments
The BSE SME Exchange, likely to kick-start its operation next month expects to list 1 million potential small and medium enterprises. I believe this number to be a reasonable estimate. Of the total 30 million enterprises in India, around at least 1 million units have the potential to get listed on the Exchange. I believe that this initiative is aimed enhancing competitiveness among SMEs, promoting financial inclusion and increasing the width and depth of the domestic capital markets. The SME Exchange could help in getting access to funding, better valuation, improvement in debt-equity ratio, bring transparency, help in establishing better standards of corporate governance and in achieving better visibility amongst investors. The exchange would serve its real purpose if it covers SME across sectors and cities, and includes entities from Tier II and III cities and towns.
Let's be realistic
There has been much déjà vu about SME exchange. NSE and BSE have both got a nod for starting an SME exchange in India. Undoubtedly SMEs are the backbone of Indian Economy. Their contribution to Indian economy has been significant both in terms of GDP and creating employment opportunities. It is obvious that SMEs need capital to grow. Until now the only solution available was to look out for Venture Capital and Private Equity Investors. SME exchanges are expected to provide opportunity to SMEs to raise capital at a reduced cost.
SME Exchange has distinct benefit in terms of listing and other fees which would be about half of what the main board charges. SME Exchange will help SMEs towards wealth creation by the SMEs, through inclusive economic growth, unleashing valuations and, also, creating wealth for all stakeholders, besides considerable income tax benefits and the facility to exit at any point of time. SMEs with paid-up capital up to Rs 10 crore can come on the SME Exchange. The listing norms have been simplified.
Game Changer for SMEs Growth
- Winner of appreciation award for promoting SMEs in India.
- 1st ever Indian magazine to penetrate tier II, III cities & the rural belt.
- Industry Partnerships include CII, FICCI, ASSOCHAM, PHDCC, AIMA, ITPO, SME Network, Federation of Indian Micro Small Enterprises (FISME)
- Official Magazine Partners for several national & international MSME events.
The Last Word
January every year used to be the Great Film Month in Delhi. International Film Festival of India, IFFI used to take place a great get together of film buffs. Youngsters with a taste for the...
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