In an exclusive interview with SME Times, Ajay Thakur, Head-BSE SME, BSE Ltd said that the BSE SME platform is getting positive response from most SMEs throughout the country. SMEs are today interested to lists themselves in the BSE SME. Few those are already listed on SME exchange are acting as a role model for the companies interested and planning to get listed.

                                                                                  Excerpts of the interview...

The Bombay Stock Exchange (BSE) last year launched the BSE SME Index, dedicated to Small and Medium Enterprises (SMEs) in the country, to track and measure the growth of the companies over a period. How do you see the response?
Ajay Thakur: SME IPO index launched on 14th December 2012 with 100 as base has appreciated more than 178% percent since launch. The Index has already found its place in the top 3 SME Indices in the world.

BSE SME platform is emerging as market leader in India at the moment. How much growth do you see will take place in terms of market share is concerned?
Ajay Thakur: As on 31st March 2013, BSE-SME Platform had 18 companies listed on BSE SME out of the total 20 in the Indian markets i.e. 90 % market share.

Earlier, you said that around 22 companies are listed at the moment in the SME exchange. Is pessimism decreasing among SMEs in the country about the SME Exchange concept?
Ajay Thakur:  Yes, it appears so as the companies listed on the BSE SME platform are realising the benefits of getting listed on the platform. The companies listed on SME exchange are acting as a role model for the companies planning to get listed. BSE is getting positive responses about the BSE SME platform from the SMEs throughout the country.

Which are the companies in pipeline for getting themselves listed? Please name few of them and among this how many have you approved yet?
Ajay Thakur: Eight more companies have submitted their applications for being listed on BSE SME exchange out of which six have been given the approval and they are in the process of getting listed.

The companies that have been given the approval are :

• R.J Biotech Limited
• India Fin-Sec Limited
• Kushal Tradelink Limited
• Ace Tours World Wide Limited
• eDynamics Solutions Limited
• Subh Tex (India) Limited

The companies that have filed the Draft Red Herring Prospectus (DRHP) with BSE and are yet to be approved are :

• Alacrity Securities Limited
• Finshore Management Services Limited

The merchant bankers have been given an additional role to handhold a company for three years. Are they (merchant bankers) able to handhold the small and medium companies? Are market makers able to guide them in the activities? How many merchant bankers and market makers are associated with this activity at the moment?
Ajay Thakur: Yes, merchant bankers have been able to fulfill their role, to the best of their abilities. Though they are SME’s but the work associated with due-diligence is usually large, but the merchant bankers are successfully hand holding the companies. According to the Chapter X B of the ICDR (Issue of Capital and Disclosure Requirements) Regulations, 2011 [106 V] Market Maker had to provide two ways quotes for 75% of time (trading period). Almost all the merchant bankers are getting associated in one way or the other, 53 market makers are already been registered and many are in process.

Are SMEs getting financial benefits from this platform? What is the current scenario?
Ajay Thakur: Yes, of course but the benefits cannot be restricted to financial terms, there is a broad array of benefits that are been offered from this platform such as enhanced visibility, price discovery, greater access to domestic and overseas finance, lowering the debt burden resulting in healthier balance sheet and many more. Currently, all SMEs that are listed have shown increased topline figures and in turn are creating wealth for share holders, we expect the same to continue for the companies who propose to get listed.

How much SMEs aiming to raise capital from the exchange?
Ajay Thakur: Almost all the SMEs want to raise funds. As on date 23 companies have raised 193.54 crores from the public and 8 companies who have filed DRHP have proposed to raise 90.76 crore of funds.

How many companies are expected to get listed by this year end? And, what are the expansion plans of the exchange?
Ajay Thakur: We are expected to get atleast 100 companies by this year end. As it is always difficult to explain the concept in the beginning, once the people starts understanding the benefits of getting listed on the SME platform it can be shared by everyone.

(Namrata Kath Hazarika can be contacted at namratakh@tradeindia.com)