Namrata Kath Hazarika | 19 Apr, 2012
Market regulator Securities and Exchange Board of India (SEBI) is open to the idea of allowing companies with no revenues to be listed in the SME exchanges, said a top official recently.
SEBI chairman U.K.Sinha said that SEBI is open to the concept of allowing companies with no revenues to get listed in alternate platforms such as SME exchanges.
He also said that SEBI has taken some vital measures to provide a platform in one of the two national stock exchanges (such as BSE and NSE) for companies listed exclusively in the regional stock exchanges.
The official added that they have two strategies; one is to provide private equity and venture capital money for the growth of SME sector, and secondly, to provide liquidity in the secondary market.
Commenting on the recently launched BSE SME exchange, he said besides the role of the private equity and venture capitalist in growth of the SME sector, a separate platform is required and that platform has been launched
He added that BCB Finance, the first company to be listed on the small and medium enterprises (SMEs) platform of the exchange, has been operational and many other companies are in the process of getting listed is future.
Sinha ruled out removal of concept of compulsory market-making in SME exchanges. âI would be happy if the combined wisdom in this room is to remove market making and then volumes in SME exchanges will flourish," he added at the CII event recently.
