Sebi looking into the idea of setting up SME Exchanges: Bhave

Mumbai, Jan 12 (PTI) Market regulator Sebi today saidthat it is looking into the idea of setting up of SMEExchanges even though no bourses have formally approached it.

"We are very keen on that (SME Exchanges)...We haveinitiated the process.. finally it is in the hands of theexchanges to decide whether they want to create a separateplatform for SMEs," Sebi Chairman, C B Bhave, told reporterson a sidelines of a function here.

On January 5, BSE Chief Executive Officer, Madhu Kannan,had said that the country''s premier bourse would announce thelaunch of its SME Exchange within a fortnight.

"We have made a number of presentations to the regulatorand a few more are awaited. Within the next couple of weekswill be have a clearer picture on this and then we will beable to announce the roll out date," Kannan had said.

The BSE, along with NSE and privately-promoted MCX SXare keen on setting up SME Exchanges since Sebi floated theidea in June last year.

However, none of these exchanges have applied formallyfor a licence with the Sebi.

The government and capital markets watchdog mooted theidea of a separate exchange for small and medium enterpriseslast year, as the existing exchanges are too costly for them.

Proposed SME bourses will allow small companies to getlisted at a lower cost and raise smaller amount of money fromthe primary markets, which will force these companies to adoptbetter corporate governance practises and in turn will getcheaper funds from capital market as well as from banks. PTIIAS BEN DK