The move is in collaboration with the SME Chamber and would allow SMEs to access asset classes like currency derivatives, interest rate derivatives and listing.
Under the initiative, SME Chamber would provide industry inputs and insights, while MSEI would create a network of active venture capital and Private Equity funds under the Prime Ministers startup India initiative.
Besides, MSEI will leverage the existing member base of SME Chamber to select the eligible companies for listing.
“Our platform is designed to provide the right financial products for assistance to SMEs in raising capital, hedging business risk from volatile currency prices and against rising interest rates,” MSEI MD and CEO Udai Kumar told reporters on the sidelines of SME Exporters and Manufacturers Summit here.
“We see a huge opportunity in the vast network of VCs and PEs in India who can participate on a platform for providing much needed capital to the startup India initiative of the Government,” he said, adding that MSEI cannot launch an SME platform like BSE and NSE as it does not have the requisite technical preparedness like its peers.
Addressing the summit, SEBI Whole-Time Member Rajeev Kumar Agarwal said requirement of making disclosures makes SMEs hesitant to list on the capital markets.
“Disclosure is one requirement which makes the entrepreneurs hesitate in going for listing,” he said, urging the SMEs to go for listing as it would benefit their future growth and provide them visibility.
He also said disclosure requirement for SMEs is less compared to that of other listed companies and there is more awareness on the issue among companies now
Kumar noted that the current regulatory framework places too much responsibility on merchant bankers which is one of the factors that prevent good SMEs to go for listing.
Source: Business Line