The market regulator Securities and Exchange Board of India (Sebi) is giving final touches to the guidelines and procedures for setting up of smaller exchanges that will cater to the financial requirements of small and medium enterprises. The new guidelines is expected to be announced by mid-December 2008.
Addressing the Assocham Conference on “Financing the Future Giants” today at Chandigarh, Dr T C Nair, Wholetime Member, Sebi said that in the initial phase, 3-4 licences will be provided to the companies, who have the net worth income of Rs 100 crore.
He said the BSE and NSE have evinced their desire to set up such exchanges and the objective would be to mobilise resources from the public on the lines of the Alternate Investment Market (AIM) set up in London.
The proposed stock exchange will be set up as a corporatised entity since inception. It shall convert itself into a demutualised entity and comply with the Securities Contracts (Manner of Increasing and Maintaining Public Shareholding in recognised Stock Exchanges) Regulations, 2006 within a specified period (1-2 years) from the date of commencement of exchange.