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No separate exchange for small, medium firms: SEBI

Indian market regulator Securities and Exchange Board of India (SEBI) said on Monday it does not require setting up a separate exchange for small and medium enterprises (SME).

business Updated: Nov 09, 2009 19:51 IST

Indian market regulator Securities and Exchange Board of India (SEBI) said on Monday it does not require setting up a separate exchange for small and medium enterprises (SME).

"It doesn't have to be separate exchange (for SMEs) " Chairman CB Bhave, told reporters after a board meeting.

The paid-up capital of SME would be capped at 250 million rupees, Bhave said, adding small and medium firms would be require their issues to be fully underwritten.

Companies listed on the SME segment would be exempted from eligibility norms applicable for IPOs and FPOs (follow on public offers) prescribed in the SEBI regulations, Bhave said.

He also said the minimum application size for an investor subscribing to an IPO for a SME would be 100,000 rupees.

"This is a process which is not going to happen tomorrow, but we are going to make the atmosphere conducive for it," Bhave said.

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