Chidambaram inaugurates BSE Indonext

Finance Minister P Chidambaram today launched BSE Indonext, a joint project promoted by the BSE and the Federation of Indian Stock Exchanges, to create a national trading platform for small and medium enterprises (SMEs).

"Indonext would be a real platform for entrepreneurs of the country who represent the SME sector. SMEs are creating millions of jobs and these companies can be the winners by replacing the current market leaders," FM said.

Majority of the research companies in the capital market are engaged in studying the prospects of 50 companies with huge market capitilisation. No research firm is carrying out any study on companies having capital structure between Rs 3-20 crore, Chidambaram said.

"There are serious liquidity problems for the scrips of these SMEs at Regional Stock Exchanges (RSEs). Even venture capital funds are ignoring SMEs as there is no exit route. These markets need to be encouraged," FM said while speaking at the inauguration of Indonext.

BSE Executive Director and CEO Rajnikant Patel said the SMEs can raise capital, list their shares on the stock exchange of their region and trade through BSE Online Trading (BOLT) and BSE Web Trading System, (WEBEX).

Securities of companies below a certain size, now trading on BSE's B1 and B2 markets, would be transferred to Indonext, which would be traded exclusively on the BSE.

The participating 18 RSEs would also transfer securities of companies listed on them to Indonext market, FM said.