The Bombay Stock Exchange and the MCX-SX have submitted an application to market regulator Securities and Exchange Board of India (Sebi) to launch an exchange for small and medium enterprises (SMEs) in India.
The National Stock Exchange is also reported to be in favour of SME exchange, though it is yet to approach the regulator.
Exchanges like the Inter-Connected Stock Exchange of India (ICSE), a grouping of regional stock exchanges, is also keen on launching a separate SME platform.
India has attempted to run an SME exchange, though unsuccessfully. An Over The Counter Exchange of India (OTCEI) was launched in 1992 and the INDO NEXT platform of BSE was inaugurated in 2005.
If an SME exchange does come up, India will join a elite club nations globally such as the UK, South Africa and Italy among others in providing a separate platform to cater to the fund raising needs of small and medium enterprises and their subsequent listing on the exchange.
?This is our fourth attempt in creating a platform for small and medium enterprises,? said CB Bhave, Chairman,Securities and Exchange Board of India while delivering the keynote address on the occasion of the fifteenth foundation day celebration of the small and medium enterprise Chamber of India.
?We are trying to get feedback from the market on what went wrong in the previous experiments so that the new attempt does not turn out be a failure,? he said.
He said that the regulator has taken a very constructive approach while framing the norms taking in to account the constraints of small and medium enterprises in terms of relaxed listing and compliance procedures.
According to the relaxed norms companies that have a paid up capital of less than Rs 25 crore would qualify as an small and medium enterprise.
They are permitted to publish periodic financial results on a half-yearly basis instead of quarterly filing and also don?t need to publish their financial results as required in the main board and can make it available on their website.
Globally the success of Alternative Investment Market (AIM) in the UK, established in 1995, has been fundamental in inspiring such exchanges around the world such as ATLX in South Africa and Mercato Expandi in Italy.