Sebi open to reviewing SME guidelines

Stating its openness to review guidelines concerning the SME platform, market regulator Sebi on Monday said it would look into the concerns of market participants to make the SME segment a more thriving marketplace.

"Sebi is open to review the SME guidelines, to make it a more thriving market place and to address the concerns of different market participants, including merchant bankers, investors and issuers," SEBI's Executive Director S Ramann said at the conference organised by the National Stock Exchange here.

The SME platform launched by both BSE and NSE have so far failed to catch up due to liquidity issues.

The SME platform has a minimum lot size of Rs 1 lakh, owing to which only large, serious players who understand the risks associated with the segment come in as investors.

"NSE had brought in many differentiators for the SME platform like voluntary grading of companies for higher transparency, a robust due diligence process to give confidence to informed investors and reducing the cost for issuers to make it easier for them to list," NSE Joint Managing Director Chitra Ramkrishna said.

SIDBI's Deputy Managing Director T R Bajalia said "participation of institutional investors and ensuring that issuers follow high governance standards , will ensure the long term success of the SME platforms."

The NSE is expecting about 10 companies to be listed on the SME Platform by March 2014.

"Five companies have been approved for IPOs, of which two have already listed and are trading well," Ramkrishna said adding the exchange expects ten companies to list on SME platform during financial year 2013-14.

The offerings of Thejo Engineering and Veto Switchgears and Cables were oversubscribed by over one and a half times and trading well while three more companies, Opal Luxury Time Products, MobME Wireless Solutions and VKC Credit and Forex Services have been approved for listing by NSE and are expected to announce their IPOs soon.