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 ReportsJan 2014
The 11th edition of the Doing Business Report compares business regulations for small and medium size domestic enterprises in 189 economies. This is a copublication of...
Listed Companies to Attract Secondary Investments
The current set of proposals envisages listing fees for the SME exchange at 50 per cent of standard BSE listing fees. I believe that listing fees can be made more dynamic based on factors such as the profitability of the company, current industry market capitalization and affordability. There are also relaxations with respect to provisions relating to the mandatory disclosure of quarterly results(to half-yearly disclosures only). I also believe that all companies and industries cannot be painted with the same brush. Hence, companies engaged in businesses with higher levels of technological innovation, patents, asset-light (service-based businesses) be allowed the flexibilities they deserve. Of course, the overall interests of the investors must be borne in mind. And the technical background and qualification or number of years of industry-experience of the founder(s) can serve as a fair pointer to this.
Other important features of the proposals include the responsibility of the Merchant Banker sponsoring the IPO being responsible for market making for a minimum period of three years. This should help create a reasonable opportunity for newly listed companies to attract secondary investments from Private Equity Funds, FIIs and Institutional Investors. Traditional lenders and banks would also be more open to extending credit to listed entities, other things being constant.
Indranil Deb is Pricinpal, Mobium Strip capital Advisors
- 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...
We are looking for writers and experts to contribute original stories and articles. Send an email to email@example.com with your story idea and lets get talking.