SEBI GUIDELINES FOR MARKET MAKERS ON SMALL AND MEDIUM ENTERPRISE (SME) EXCHANGE A MAJOR STEP TOWARDS CORPORATISATION OF SMES: CII

3RD MAY 2010, Welcoming the SEBI guidelines for market makers on Small and Medium Enterprise (SME) exchange/separate platform of existing exchange having nation wide terminal, CII said the SEBI circular is a major step towards the corporatisation of the SMEs and marks the beginning of the gradual roll out of the SME Exchange.

CII is delighted to note that its long standing policy recommendation on establishment of the SME Exchange is being implemented. According to Mr Chandrajit Banerjee, Director General, CII, “considering the present stage of development of SME and the inherent dynamism among the entrepreneurs in this sector, time is now ripe to encourage the existing Stock Exchanges to set up a trading platforms in securities of SMEs. This will not only enable SMEs access capital but also go a long way in promoting entrepreneurship development in India”.

Applauding the efforts of the Ministry of MSME and the SEBI, Mr Salil Singhal, Chairman, CII National Committees on MSMEs and Chairman, Secure Meters Limited said that, “the sources of capital for SMEs are rather limited as these enterprises are generally unable to access the capital markets. The listed SME would henceforth enjoy greater visibility in the eyes of the investors, thereby enabling them to raise the much needed capital for expansion”.

CII submits that the disclosure requirements needed as part of the listing agreements should be simple and easily compliable so that the benefits of raising capital through the capital markets route is not withered due to high cost of compliance.

New Delhi

Neelam Joshi

Media Desk

Confederation of Indian Industry

23, Institutional Area

Lodi Road

New Delhi – 110 003

Mobile: 9810882431