The launch of BSE SME ITP is consequent to SEBI's provision in ICDR (Issue of Capital and Disclosure Requirements) guidelines allowing SMEs to list on the exchange without bringing in initial public offer (IPO).
In addition to allowing SMEs and start-up companies to raise capital, the BSE SME ITP will provide easier entry and exit options for informed investors like angel investors, VCFs and PEs etc. The new platform offers better visibility and wider investor base while offering tax benefits to long term investors.
"With an advanced trading platform and better services launch of ITP on BSE SME will complete the products which are valuable to investors and companies," he added.
As per the regulatory norms, the BSE SME institutional trading platform offers relaxed compliance and cost effective listing to SMEs. The regulator has provided an exemption to SMEs, under which companies have to offer up to 25 percent of its shareholding through an IPO.
Any company that has not completed a period of more than 10 years after incorporation and its revenues have not exceeded Rs 100 crore in any of the previous financial years is also one of the eligibility criterion.