Fin Tech, Sidbi to team up for SME bourse

The Small Industries Development Bank of India (Sidbi) is likely to join hands with Financial Technologies, the promoter of the Multi Commodity Exchange of India (MCX), to set up a trading platform for small and medium enterprises (SMEs).

According to sources, Sidbi has held preliminary discussions with senior officials of Financial Technologies and is expected to present a final proposal to the capital markets regulator soon. Sidbi officials were unavailable for comments.

The NSE and the Interconnected Stock Exchange also have plans for a SME trading platform, while the Over the Counter Exchange of India plans to revive its business.

Sebi chairman M Damodaran has stated that the regulator was in favour of a separate trading platform for small enterprises. The regulator, according to sources, was keen on such an exchange given the dismal performance of regional bourses.

"Though no guidelines have been issued separately, it is felt that SMEs would require a much lower disclosure standards," sources added.

The Securities and Exchange Board of India (Sebi) on Friday allowed listed companies to send abridged annual report to shareholders, relaxing the existing rules which require companies to send comprehensive reports.

In fact, on Thursday Sebi issued a circular allowing listed companies to send abridged, instead of comprehensive, annual reports to shareholders.

Among the global exchanges, London Stock Exchange's Alternative Investment Market is the most successful platform for small issues has attracted a large number of companies globally, including India, in recent times.