Small promoters revealed that listing charges were expensive and were apprehensive about losing control
Securities and Exchange Board of India has asked the stock exchanges, Small Industries Development Bank of India (Sidbi) and venture capitalist associations to explore ways that could make raising capital through the exchanges cost less for small
Mumbai: The Securities and Exchange Board of India has asked the stock exchanges, Small Industries Development Bank of India (Sidbi) and venture capitalist associations to explore ways that could make raising capital through the exchanges cost less for small and medium entrepreneurs. Sebi chairman U.K. Sinha said interaction with the small promoters and entrepreneurs in smaller towns like Rajkot, Coimbatore etc., revealed that the small promoters found the listing charges expensive — as high as 9-10 per cent of the compliance costs — and were apprehensive about losing control over their company. He said unless the exchanges, Sidbi and VCs focused on these issues “growth would not happen”.
“The contribution of the SMEs to growth and exports is well known,” he said and also said that the SME platform on the exchanges were a “reasonable big success,” with 94 companies listed on the BSE, whilst countries like Philippines and Brazil were still thinking of listing SMEs.Mr Sinha also said that the new guidelines for listing startups would be ready by June and it would be liberalised as there was need to provide them with ways to raise capital.
He mentioned that cities like Pune, Bengaluru and Thiruvananthapuram had high levels of entrepreneurship and innovative minds with fantastic solutions. Regulations for electronic initial public offerings would be ready in a few months he said and expressed concern over the serious shortfall of manpower trained in compliance requirements, risk management etc., in the securities market. The shortfall is estimated at 30,000.
( Source : dc correspondent )
Next Story
