There is need for a separate exchange or platform for small and medium enterprises (SME) as the criteria for listing such companies are different, Finance Minister Pranab Mukherjee said today.
“The need and criteria of listing at SME exchange/platform are different from those for listing on BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). Therefore, it is felt that separate SME exchange/platform of existing stock exchanges are required,” Mukherjee said in Rajya Sabha.
Last year, Securities and Exchange Board of India (Sebi) had announced norms to set up a stock exchange for SMEs to tap the market.
In November, Sebi Chairman CB Bhave had said after the board’s meeting there is no need for a separate exchange platform and the platform can be set on existing bourses.
“Sebi has decided to facilitate the setting up of separate stock exchanges or a platform in the existing stock exchanges dedicated to the SME with the objective of making available equity capital at lower cost for small and medium scale industries,” Mukherjee said.
He said the Sebi had not set a timeline for setting up a separate exchange or platform for small and medium enterprises.
“No timeline has been set up by the Sebi for the setting up of such an exchange/platform for trading to commence,” Mukherjee said.