Private financing in a regulated environment was the way forward as the country moves to a culture of appreciating the contribution of start-ups and small and medium enterprises, Securities and Exchange Board of India (SEBI) Chairman U K Sinha said here today.
"There is an acute need for developing small and medium enterprises (SMEs) that have huge potential but suffer from absence of capital," he said.
He was delivering a lecture on the topic 'How SMEs and start-ups can raise money from the market' organised by the Kerala State Planning Board and hosted by the Asian School of Business (ASB).
He also outlined the various opportunities provided for SMEs and startups for raising capital including a dedicated SME platform in national stock exchanges, institutional trading platforms, venture capital and dissemination board that will enable trading by companies listed in regional stock exchanges.
"Safeguarding the interests of genuine investors will remain paramount even while promoting alternate fund raising mechanisms for the industry," he said.
K M Chandrasekhar, Vice-Chairman, Kerala State Planning Board, in his Presidential address said promoting home-grown industry was the best solution for taking ahead growth of industries in Kerala.
"The industrial climate in Kerala can best be captured by local entrepreneurs. Proliferating startups are offering new leads for future industrial growth," he said.
Sanjay Vijayakumar, chairman, Startup Village noted that India was fast becoming a knowledge economy where people, ideas and creative infrastructure would matter a great deal.
S Rajeev, Director, ASB wanted SEBI to favourably look into crowd funding options. "Crowd funding is a market research in disguise as it gives a preview into how well the product or application may be received upon completion."
Panelists representing the industry recorded appreciation to the emerging opportunities for raising funds unlike in the past.
