SEBI eases rules for IPOs in SME exchanges

The companies with either market cap or paid up capital upto Rs 25 crore will only require exchange's approval for listing.

hidden June 02, 2011 18:25:01 IST
SEBI eases rules for IPOs in SME exchanges

Kolkata: Hassles for companies with paid-up capital upto Rs 25 crore would be less from September to raise money via Initial Public Offering (IPO) as the nod from market regulator Security and Exchange Board of India would no longer be necessary.

The companies with either market cap or paid up capital upto Rs 25 crore will only require exchange's approval for listing.

SEBI eases rules for IPOs in SME exchanges

IPOs would be easier for low capital firms from September. Reuters

Such companies will not be required to take approval of the Securities and Exchange Board of India to make the public offer and getting listed, BSE head of product strategy Sayee Srinivasan told reporters on Wednesday on the sidelines of a roadshow of the exchange.

In reply to another query, he said by September it was expected the BSE will be ready to launch the exchange facility to cater to small and medium enterprises. NSE has also received in-principal approval for similar SME exchange.

However, to participate in trading the minimum trading lot would be Rs 1 lakh.

Keeping in mind the interest of small investors who not have much access to small private companies, it was decided to keep the minimum trading lot of Rs 1 lakh, irrespective of share value, Srinivasan said.

PTI

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