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Journalism of Courage
Market regulator,Securities and Exchange Board of India said proposed exchanges for SMEs need not necessarily be a part of existing exchanges but can also be opened as separate exchanges.
With a view to encourage small and medium firms to come out with public issues,market regulator SEBI yesterday allowed existing stock exchanges to set up a separate trading platform and relaxed the criteria for their listings.
However,these SME exchanges can also be opened separately by eligible parties not as a part of the existing exchanges,Sebi Whole Time Member,Prashant Saran told reporters.
8220;There was nothing in yesterday8217;s announcement that prevents eligible parties from opening separate exchanges for SMEs8230; it can be separate also,8221; Saran said on the sidelines of an IBA-seminar here.
Sebi Chairman,C B Bhave said yesterday that existing exchanges can open the SME trading platform,as this will help cost effectiveness.
8220;It makes sense to allow the present exchanges to do it set up the SME trading platform. This will help the process cost effective to set up the new trading platform for SMEs. It need not have to be separate exchange,8221; Bhave had said.
