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Running a magazine concentrating on issues of small and medium enterprises and managing with limited resources is a like living life on the edge. In this rush of meeting deadlines,...

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Apr 2012

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Money

DSE May Provide Platform for SMEs, Hopes to enlist 8000 companies in One Year

Dr. Vinod Sethi
Apr 2010

Now it is democratization of the stock markets, with concerted efforts being made to take the equities cult to hitherto untouched rural areas and less familiar urban areas.

The suggestion for doing so was made by Corporate Affairs Minister Salman Khurshid at a seminar here recently and the cue swiftly picked up by the stock broking community. The idea was mooted by the Minister at a panel discussion on 'Union Budget and The Capital Market', who opined that only 1.5 per cent of the nation's household savings go into purchase of stocks. He said just as the government had made a bid to strengthen grass roots democracy, it was time that the interest in equities is taken far and wide, so that rural areas too can benefit from their prosperity. The prime beneficiaries have so far been retail investors in urban areas, domestic financial institutions (DFIs) and foreign institutional investors.

A galaxy of speakers took part in the event, being hosted by 'The Capital Foundation' and 'Delhi Stock Exchange.' They included CPI(M) polit bureau member Sitaram Yechury, former Member of Parliament Nitesh Sengupta, BJP MP and spokesperson Prakash Javadekar, and Delhi Stock Exchange Director and Association of National Exchanges Members of India (ANMI) Chairman B K Sabharwal , Executive Director of Delhi Stock Exchange H. S. Sidhu, and DSE former president Bharat Bhushan Sawhney. The discussion was moderated Secretary General of Capital Foundation Society Dr. Vinod Sethi.

Sabhawal said the DSE will become operational within 45 days and is trying to get a platform for the micro, medium and small enterprises. He said as many as 8,000 companies would get listed on the DSE in a period of one year. Sabharwal said once DSE starts functioning, many regional exchanges, which are closed at the moment, will take a clue from the DSE and start their operations in not too distant a future. He said the DSE will endeavour to spread its wings far and wide and bring under its fold the rural areas, where the equities cult has not yet spread. Khurshid noted that the stock markets have moved northwards ever since the Budget was presented, with FII's flocking back to the bourses.

The rise of the stock markets after the presentation of the Budget was not a common place phenomenon and this is perhaps for the second time that such a situation has happened. The Minister said the Budget was presented at a difficult time and people were expecting a much tougher and harsher Budget than the one which Finance Minister Pranab Mukherjee gave to the nation.

He said the pleasant surprise has contributed to the enthusiasm of the bourses. Mr Khurshid said the Budget had done a great deal for the agriculture sector, employment generations in rural areas and

setting up of rural infrastructure as well as social sectors. Khurshid, who is also the Minister for Minority Affairs, said that despite the leash on fiscal deficit, Mukherjee has not downsized the outlay for his ministry.

Programme of development of backward areas, where minorities live, is operational in 90 districts whose outlay has been increased to Rs 1,700 crore. The story of the Budget has been well sold to the capital market, but it was time that the stock exchanges enhanced their footprints to uncovered areas. Khurshid said it was also a time that medium and small enterprises expanded their equity by getting listed on the stock market. He was of the view that implementation of Direct Tax Code (DTC) and Goods and Services Tax (GST) would go to add to the investor friendly climate created by the Budget.

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