BSE to Launch SME Exchange on March 13

The Bombay Stock Exchange (BSE) is ready to launch its Small and Medium Enterprises (SME) operations from March 13, 2012.

Small corporates will be able to raise capital from the primary markets by way of an initial public offering (IPO) or private placements and later through rights issues. An IPO can be made through the fixed price method, book building method or a combination of both.

The markets regulator Securities and Exchange Board of India (SEBI) had, last September, granted permission to the BSE to launch SME Exchange that will offer a platform to small and medium companies to raise funds.

The SME Exchange, which will function like the AIM of the London bourse, the TSXV of Canada, the GEM of Hong Kong, the Mothers of Japan, the Kosdaq of Korea and the Nasdaq, has been developed after studying the salient features, best practices and the business model of these existing exchanges.

The market leader National Stock Exchange (NSE) and the privately-promoted Multi Commodity Exchange (MCX) are also in the process of launching the same platform for small and medium scale enterprises.