The government would ask market regulator Sebi to frame separate norms while setting up the exchange for SMEs so that small and medium enterprises do not have to spend high on advertising for their public issues.
"While setting up exchange for SMEs, Sebi should come out with separate rules so that they do not have to incur high expenses on advertising for their public issues and reports to the investors," a senior official in the ministry of micro, small and medium enterprises.
He said the ministry would try to impress upon the Securities and Exchange Board of India to ensure that these units do not have spend too much while raising funds from the market. The ministry will also submit the views of the industry to the regulator, he added.
Sebi Chairman C V Bhave said on Tuesday initially only big investors may be allowed to invest in the SMEs.
He indicated that although there would be no compromise on accounting and reporting standards for them, there could be relaxations in rules related to rigorous compliance requirements that bigger companies have to.
In a discussion paper, Sebi has proposed to set up a separate SME exchange and has sought public comments.
Small Industries Development Bank of India, along with the National Stock Exchange and Infrastructure Leasing and Financial Services Limited is expected to be the joint promoters of the SME exchange.
At present, the MSMEs constitute about 20 per cent of total GDP, while employing over three crore persons.
© 2026