Both the main stock exchanges have set in motion a separate platform to generate more interest and more liquidity for the small and medium enterprises (SME) segment.
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have both got a final go-ahead in this regard from the Securities and Exchange Board of India (Sebi), which has also relaxed some norms for the smaller companies. Both initiatives are at an advanced stage.
"The idea is to generate enough interest in the (SME) space, so that it attracts more and more good-quality companies," said a person privy to the developments.
"The most common issue is lack of information and the exchanges are trying to plug that gap by acting as facilitators. The platform will be a one-stop source for SMEs, merchant bankers, private equity (PE) & venture capital (VC) funds and even law firms that would like to advise such companies."
Essentially, the exchanges would help bring together investors and companies on the same table, along with merchant bankers, who have been assigned the task of market making for three years after managing the Initial Public Offer of those which list.
NSE, incidentally, sponsored an event recently which was attended by representatives of merchant banking entities, law firms, PE/VC
Now get advice on shares from stock exchanges
BSE to train millions in financial skills
Calcutta stock exchange to launch trading platform
Indian IT companies now turn to domestic market
WB: Ex-Rajya Sabha VC and CPI-M MLA jumps to death