SME Times News Bureau | 05 Oct, 2019
BSE SME segment has helped 309 companies to raise 3237crs.These companies has
created a valuation of 18000cr, said Ajay
Thakur, Head- BSE SME at
BSE Ltd, Mumbai, in an exclusive interview with SME Times.
Excerpts of the interview...
Please tell our readers
about evolution of the BSE SME segment.
SMEs are the backbone of Indian Economy. This is
reflected in the form of their increasing number and rising proportion in the
overall product manufacturing, employment, technical innovations and promotion
of entrepreneurial skills. In India, MSME sector is the second largest
employer, after agriculture accounting for 80 million plus jobs. With the
Indian economy growing, the need of SMEs to raise capital is becoming
increasingly critical. Thus, the creation and conservation for SMEs becomes
inevitable. Therefore a specialized capital market segment was needed to be in
place that can provide risk capital for promising entrepreneurs, promoting
innovation crucial for sustainable economic growth. With this objective and as
per the recommendation of Prime Minister Task Force, SEBI has come out with
detail guidelines on SME Exchange through their various notices dated 18th May,
2010, 26th April, 2010 and 17th May, 2010. BSE understood the importance of
Small and medium enterprises (SME) towards the growth of economy and therefore
taken the initiative to launch its SME Platform on 13th March, 2012
BSE SME segment is helping SMEs to raise funds and how successful is it?
BSE SME platform is doing a lot of awareness
programme with various stake holders across the country. Arranging meetings
between the promoters and merchant bankers as well as investors. This has
brought tangible results and helped 309 companies raising 3237crs.These companies
has created a valuation of 18000cr.
How many SMEs are currently
registered with BSE SME platform and how many more are in the pipeline?
309 companies have listed on BSE SME platform and
57 companies are in the pipeline.
How much capital have these companies
listed on BSE SME platform raised?
Please let our readers know the
benefits of listing on a stock exchange
1. Provide the SMEs equity financing opportunities to grow their
business from expansion to acquisition.
2. Equity financing will lower the debt-burden leading to lower costs
and healthier balance-sheets.
3. Expand the investors’ base, which in turn will help in getting
secondary equity financing including private placement.
4. Enhance the visibility, through media coverage resulting in a
better profile and credibility leading to increase in the value of its shares.
5. Exit option that reduces the lock-in period helps in incentivizing
big venture capital participation.
are the challenges faced by SMEs while accessing capital markets?
SME's face challenges in raising the funds on the
ground mentioned below
How many companies have
migrated to the main board and their market performance?
tell us about the improvement in the level of corporate governance
listing all the companies has to declare half yearly (Unaudited) results and audited in the end of the
financial year. More transparency comes in as they declare results in
prescribed intervals and shareholding to the exchange. Further, they are also
required to have one third independent directors in their board and a fulltime
company secretary to do all compliances.
awareness programs conducted by BSE SME to encourage SME’s get listed on
We have done 1800 seminars and met 28000
promoters. The main concerns were viz
1. Listing will increase the compliances manifold
will be threat of take over
3. Interference in the business by shareholders
Accountability will increase manifold