SMEs want lot size reduced, separate set of brokers

The SME Chamber of India is planning to make a representation to capital markets regulator Securities and Exchange Board of India (SEBI) requesting that the size of a trading lot be reduced and to have a separate set of brokers for SME trades, reports Devraj Uchil.

The SME Chamber of India is planning to make a representation to capital markets regulator Securities and Exchange Board of India (SEBI) requesting that the size of a trading lot be reduced and to have a separate set of brokers for SME trades.

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“Access to public offer route would help SMEs raise funds, which are hard to come by from banks,” said Chandrakant Salunkhe, president, India International Trade Centre and SME Chamber of India. “But the trading lot size should be reduced to Rs 25,000 so

that retail investors could participate.”

“It seems the regulator wants to keep retail investors away from this segment, as it could be very volatile,” said Amit Majumdar, executive director and chief strategy officer, Angel Trading.

SEBI, which on Monday had allowed stock exchanges to set up separate trading platforms for SMEs (small and medium enterprises) to help them

raise money from the primary market.

“In order to have informed, financially sound and well-researched investors with a certain risk taking ability, a minimum IPO application size of Rs 1 lakh would be prescribed,” it said in a release.