On May 25, Sebi had given in-principle nod to the Asia’s older bourse’s proposal to launch a dedicated SME platform.
With a view to let smaller firms access equity capital without the existing cumbersome process, the Sebi had last year come out with guidelines for dedicated SME exchanges.
Gurulothu said listing fees at the SME exchange is 50 per cent of BSE and companies are not required for announcing quarterly results but go for half-yearly disclosures only.
“100 per cent underwriting of the issue by the Merchant Banker and shall underwrite 15 per cent in their own account. The Merchant Banker shall be responsible for market making for a minimum period of three years,” he added.
Gurulothu further said all existing trading members would be eligible to participate in SME exchange without any further registration and by default members, adding, “FII, Venture Capital(VC) can exit SME whenever they want”.
Asked whether SEBI approval is required to bring IPO, he said, “Sebi approval is not required to bring IPO in SME.”
