BSE launches Institutional Trading platform on BSE SME
Mumbai, February 11, 2014: BSE India’s fastest stock exchange today launched Institutional Trading Platform in the BSE SME segment. The new platform will facilitate the start companies and SME to list without IPO.
The launch of BSE SME ITP is consequent to SEBI’s provision in ICDR guidelines allowing SMEs to list on the exchange without bringing in Initial Public Offer (IPO). Shri Rajeev Kumar Agarwal, Whole Time Member, SEBI inaugurated the platform earlier in the morning.
In addition to allowing SMEs and start-up companies to raise capital, the BSE SME ITP will provide easier entry and exit options for informed investors like angel investors, VCFs and PEs etc. The new platform offers better visibility and wider investor base while offering tax benefits to long term Investors.
As per the regulatory norms, the BSE SME Institutional Trading Platform offers relaxed compliance and cost effective listing to SMEs. The regulator has provided an exemption to SMEs and starts from the requirements of rule 19(2)(b) of SC(R)R 1957, under which companies have to offer up to 25% of its shareholding through an IPO.
Any company whose paid up capital has not exceeded 25 crore rupees in any of the previous financial years and has at least one full year’s audited financial statements for the immediately preceding financial year at the time of making listing application or any company has not completed a period of more than 10 years after incorporation and its revenues have not exceeded 100 crore rupees in any of the previous financial years is eligible to get listed at the BSE SME ITP.
Speaking on the launch of BSE SME ITP, Shri Ashishkumar Chauhan, MD & CEO of BSE said “Pursuant to SEBI’s notification, BSE is happy to launch the new trading platform for Institutional investors in the BSE SME segment. BSE is a leader in the SME category with over 46 listed companies. Additional 15 companies are at various stages of completion of their IPO taking the total listed companies to 61. This new platform will enable SMEs to raise money without having to go through the extensive IPO process”.
“With an advanced trading platform and better services launch of ITP on BSE SME will complete the products which are valuable to investors and companies ”, he added.
ABOUT BSE (formerly Bombay Stock Exchange Ltd.)
Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.), is Asia’s first Stock Exchange and one of India’s leading exchange groups and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder-base which includes two leading global exchanges, Deutsche Bourse and Singapore Exchange as strategic partners. BSE provides an efficient and transparent market for trading in equity, debt instruments, derivatives, mutual funds. It also has a platform for trading in equities of small-and-medium enterprises (SME). BSE also provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments. It operates one of the most respected capital market educational institutes in the country (the BSE Institute Ltd.). BSE also provides depository services through its Central Depository Services Ltd. (CDSL) arm.
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