Stock exchange BSE has said the Rs
10,000- crore venture capital fund for start-ups and MSMEs announced in
the Budget will help boost its SME platform as it expects more small
companies to approach it to raise capital. "We are looking at more and
more SMEs to get listed on BSE SME Platform to raise funds and list
themselves," BSE Managing Director and Chief Executive Ashishkumar
Chauhan told PTI here on the sidelines of an ICSI event over the
weekend. At present, there are 61 SMEs listed on BSE's dedicated SME
platform, which was launched in March, 2012. Of these, 20 are traded on
the platform and their combined market capitalisation stood at Rs
7,448.25 crore as of July 11. The BSE was the first bourse to launch a
dedicated platform for SMEs and start-ups in March 2012 after the
regulator Sebi allowed small companies to get listed without an IPO. It
launched an institutional trading platform for this in November 2013.
The NSE followed suit in September in the same year when its platform
Emerge went live. This development came after the Budget 2012 had
announced that start-ups and SMEs could get listed on the bourses
without bringing IPO. Consequently, capital markets regulator Sebi
decided to permit the listing without IPO and trading of specified
securities of SMEs, including start-up companies, on institutional
trading platform on the exchanges. Sebi notified new provisions and
issued a detailed circular to facilitate such listings last October.
Meanwhile, industry experts hailed the Budget proposal to set up a Rs 10,000 crore start-up fund, saying the move will spawn an era of entrepreneurship and innovation in the country as the small and medium industries are the backbone of the economy. "The proposed venture capital fund will give a big boost to new generation of entrepreneurs who are innovative, but facing crunch in capital, which in turn will lead to lot of path-breaking ideas getting transformed to reality, especially in the technological field," serial entrepreneur and founder of the only publically traded cloud computing firm 8KMiles Suresh Venkatachari said. According to the SME listing norms, a company would be eligible for listing if it has not completed 10 years after incorporation, and its revenue has not exceeded Rs 100 crore in any of the financial years. In addition, the company should have got an investment of at least Rs 50 lakh by an alternative investment fund, or a venture capital fund, or by a merchant banker, or an angel investor, or a specialised international multilateral agency, or a public financial institution, among other such investors, according to Sebi.
Meanwhile, industry experts hailed the Budget proposal to set up a Rs 10,000 crore start-up fund, saying the move will spawn an era of entrepreneurship and innovation in the country as the small and medium industries are the backbone of the economy. "The proposed venture capital fund will give a big boost to new generation of entrepreneurs who are innovative, but facing crunch in capital, which in turn will lead to lot of path-breaking ideas getting transformed to reality, especially in the technological field," serial entrepreneur and founder of the only publically traded cloud computing firm 8KMiles Suresh Venkatachari said. According to the SME listing norms, a company would be eligible for listing if it has not completed 10 years after incorporation, and its revenue has not exceeded Rs 100 crore in any of the financial years. In addition, the company should have got an investment of at least Rs 50 lakh by an alternative investment fund, or a venture capital fund, or by a merchant banker, or an angel investor, or a specialised international multilateral agency, or a public financial institution, among other such investors, according to Sebi.
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