ROLE OF BSE IN THE GROWTH OF SMES

Dr.K.Chandrasekar
Assistant Professor- AIMS, Karaikudi.

J.Suhashini
Faculty-PSNA College of Engineering and Tech, Dindigul

INTRODUCTION
Entrepreneurship and SMEs are often found closely related 30 million SMEs in Indian Country which contribute about 8% of the countries GDP, 45% of the manufacturing output and 40% of the countrys exports. Many tiny and small enterprises have become huge capital turnover companies. The Equity cult in the country has witnessed many companies becoming big from small by raising funds from capital market.

Classification of SMEs

Need for SME Exchange

Employees

to participate as stake

holders Risk of the business is distributed Pillars of Financial system is only Debt Financing and Capital Market. To overcome the difficulties of the Life cycle of SMEs

Life Cycle of a Company

Expansion Stage

Decline due to lack of funds IPO

Developing Stage Stable Profit Margins Growth Stage PE Firms hold the hands of SMEs

Nascent Stage

Supported by Venture Capital Firms

High Risk & Lower Profit Margins

Increase in Sales & Rise in Profit Profitability

Profit Margin tends to rise as the business expands

Unlocking the Capital Market Opportunities

SME EXCHANGE
SMEs are the part of existing equity platform BSE BOLT (BSEs On-Line Trading) in the M and MT Groups SME Exchange is also committed to deliver the best products, services and asset classes to all the stakeholders who enable to work closer with entrepreneurs, Merchant Bankers, Market Makers, Investors, Industry Association and other stake holders

SME EXCHANGE
post issue face value capital up to Rs.10 crores shall be covered under the SME Platform Rs.10 25 crores may get listed at SME Platform > than 25 Crores on Main Board Suitable provisions for migration to/ from main board The minimum application amount as well as minimum trading lot shall not be less than Rs.1,00,000/100% underwriting of the IPO issue by the Merchant Banker and shall underwrite 15% in their own account The Merchant Banker shall be responsible for market making for a minimum period of 3 years

SME EXCHANGE
Shall be required to provide two way quote for 75% of time in a day, to be monitored by the Stock exchange The BSE SME Segment will be part of the BSE BOLT System. No additional infrastructure is required by the Member brokers The trading time of this platform is from 09:00 am to 03:30 noon All the empanelled merchant bankers with SEBI can do merchant banking for the BSE SME Exchange (by default)

BENEFITS SME EXCHANGE

Equity Financing helps for the growth of the enterprise The BSE SME Segment will be part of the BSE BOLT System. No additional infrastructure is required by the Member brokers The trading time of this platform is from 09:00 am to 03:30 noon All the empanelled merchant bankers with SEBI can do merchant banking for the BSE SME Exchange (by default)

Provide the SMEs with equity financing opportunities to grow their business from expansion to acquisition

BENEFITS OF SME

CONCLUSION
SMEs together with the micro and khadi units contribute major portion to the Indian economy. Government has played very constructive role as a progress to set up a SME rating agency (SMERA). In the era of economic instabilities and uncertainties SMEs salute the entrepreneurial spirit in their abilities and succeeded in building well managed enterprises which in years SMEs can shape into conglomerate through BSESME Exchange.