Financial Tech plans SME bourse

Financial Technologies (India), promoter of the Multi Commodity Exchange of India (MCX), is learnt to have submitted a proposal to the capital market regulator Securities and Exchange Board of India (Sebi) for setting up a separate stock exchange for small and medium enterprises (SMEs).

FTIL, which has transformed the MCX into a major commodities exchange, is also a promoter of the Dubai Gold and Commodities Exchange, in which the Dubai Metals and Commodities Centre and MCX are the other stakeholders.

The company hopes that its success in establishing these two exchanges will find favour with the Sebi. When contacted, an FTIL spokesman said it was "premature" to talk on the issue at this point of time. FTIL was also invited by the West Bengal government to revive the ailing Calcutta Stock Exchange.

Sebi Chairman M Damodaran said many times, in public, there was a need for a separate exchange for SMEs. He also floated the idea of reviving the Over the Counter Exchange of India (OTCEI) saying this was the right time for looking into the matter because of the crucial role the segment were playing in the economy.

The OTCEI was incorporated in early 1991, even before the establishment of the National Stock Exchange, to cater exclusively to SMEs.

Industry sources said the government would relax the listing norms for SMEs and was also likely to increase the eligibility criteria for companies coming out with initial public offers.