BSE approved to launch SME Exchange

Asia’s Oldest stock exchange Bombay Stock Exchange (BSE) has got permission to set up an exchange for small and medium enterprises (SMEs) from SEBI. This approval would enhance BSE’s efforts in offering multiple asset classes to Indian investors. The consent to establish SME will allow BSE to add towards the Governmental schedule of better financial inclusion and according capable enterprises of the future to entrée retail capital. An in-principle permission for setting up set SME exchanges was given to both BSE and NSE by SEBI in May 2011. Please note that National Stock Exchange (NSE), India’s largest exchange, is in anticipation of a formal SEBI authorization to begin a like SME exchange

Implications:

• Companies with less than Rs 10 Crore capital base can now raise money from the primary market following the fresh exchange established by BSE
  
• The fresh exchange will be a catalyst in raising funds for SMEs
  

Month: Current Affairs - December, 2011