BSE, FKCCI take on SMEs getting listed on Stock Exchange

 Reinforcing the importance of SMEs in the GDP growth of the country, Bombay Stock Exchange Ltd (BSE)head Ajay Thakur, Head exhorted the industry players to go for listing to solidify their financial credentials.

Addressing a seminar on - “Opportunities for listing of SMEs on Stock Exchanges”, organised by the BSE Limited and FKCCI in association with Way2Wealth Brokers Pvt Ltd & Sarthi Capital Advisors Pvt Ltd here, Thakur said, “MSMEs (Micro, Small and Medium Enterprises) contribute 17 per cent to the country’s the GDP, 40 per cent to the nation’s export and are the largest employment generator in India, employing 7.5 cr people through four crore enterprises”.

With such reassuring figures, SMEs should be provided with profitable equity financing options, strengthening their balance sheets, reducing EMIs and raising profits. SME Listing will also help them emerge as two pillars of the financial system- Banking and Capital Market.

 SMEs need to have net tangible assets of Rs 3 cr and net worth of Rs 1 cr to be listed on the BSE and NSE SME Exchange. The post issue paid up capital of the enterprise should be Rs 1 cr as per the SME’s latest audited financial results. Accoding to Sebi guidelines, Thakur said, “SMEs can get listed either on the SME Exchange or the BSE/NSE Exchange if its paid up capital is between Rs 10 to Rs 25 cr and if it exceeds Rs 25 cr, the enterprise had to necessarily get listed on the main stock exchange”.

The BSE SME platform initiated Institutional Trading Platform(ITP), which was launched on 11th February 2014, has received 27 applications awaiting listing and seven already listed on BSE.

Thakur said,“SMEs with listing get better valuation along with an added advantage of zero short term capital gain tax and 15 per cent on long term capital gain. Out of 61 SMEs currently listed on stock exchange, only Samruddhi Realty Ltd and Unishire are from Bangalore.”