The National Stock Exchange (NSE) has launched its much-awaited Small and Medium Enterprise (SME) platform "EMERGE" in New Delhi on Tuesday.

Briefing the media after the launch here, the NSE, Managing Director, Ravi Narain said, "We have been very sure and deliberate in ensuring that only good-quality companies come on board. They (SMEs) should get fair amount of hands and support that they appear to require."

He further said that there are quite a decent number of SMEs interested to be listed in the platform in the next few weeks. Also, he clarified that some are in a primary stage.

Narain also said there are 'substantial interests' among SMEs to get listed in the platform. Also, the turnover will be definitely modest on the platform initially but it is unlikely to become a revenue earner for the exchange.

Currently, the first company which opened its IPO on EMERGE is Thejo Engineering. The company has done a very successful IPO, earlier this month, which was oversubscribed by 1.53 times. The retail category was oversubscribed by 2.61 times and investors from as many as 14 States, from all over the country, participated in the IPO.  The QIB (qualified institutional buyer) category was also fully subscribed.  The total number of shares offered was 4.72 lakh shares and bids were received for 7.23 lakh shares.

NSE chief also said, "We are keen that it becomes a viable and more importantly, a sustainable platform for India's best emerging businesses to raise capital from informed investors. Globally, junior platforms have succeeded by coordinated efforts of exchanges, merchant bankers and investors including angel investors, venture capital and private equity community."

"We have engaged extensively with this eco system in India and have tried to understand their expectations," he added further.NSE has also put in place a strong and credible admission process for listing on EMERGE. These processes, including third party diligence, will provide confidence to investors, while NSE's handholding of SME entrepreneurs will give confidence to the emerging companies.

Also, research support to listed issuers and options of alternate trading options are being offered to help improve liquidity and secondary trading interest. "We are also collaborating with the risk investor community and other Institutions to create an electronic platform to improve investment efficiency in early stage and start up enterprises," he added.   

Hailing the initiative during the launch, the Finance Minister, P. Chidambaram also said it is important for SMEs to raise capital. "This is one of the ways how SMEs can grow", he added.

But, he mentioned that it is not easy to bring these SMEs to the market as they are scared of regulations mandated by Securities Exchange Board of India (SEBI).

"I think the opportunities for the micro, small and medium enterprises to raise capital and to grow and to expand are so large that we must get over these obstacles and try to see that those who have the entrepreneurial quality are able to raise capital and grow," he said further.

He said that the Bombay Stock Exchange (BSE) has already listed seven companies and two are in pipeline. It is important that more companies get added to the list, which can help SMEs to grow further, the finance minister added.