Announcing MCX Stock Exchange's (MCX-SX) intent to have a dedicated platform for small businesses, the soon-to-be-launched bourse's promoter and vice-chairman Jignesh Shah today said SMEs should aspire to raise up to USD 20 million annually through such platforms.
Announcing MCX Stock Exchange's (MCX-SX) intent to have a dedicated platform for small businesses, the soon-to-be-launched bourse's promoter and vice-chairman Jignesh Shah today said SME s should aspire to raise up to USD 20 million annually through such platforms.
The country's first privately promoted bourse MCX-SX, which has announced to go live before Diwali (November) after a protracted battle with the regulator Sebi, will definitely be launching a dedicated SME platform as has been done by its rivals BSE and NSE, Shah told PTI on the sidelines.
However, he declined to share a timeline for the same.
Shah said that at least 1 per cent of the 30 million SME s have strong balance sheets to get AAA ratings and can look at raising money from the primary market.
Citing the studies and roadshows done by MCX-SX in the recent past, he said many SME s depend on the informal system for their financing needs, paying up to 2 per cent per month for debt.
He cited how in spite of such a high cost of servicing debt, the businesses continue to remain competitive and wondered the benefits which will accrue if they shift to the formal way of finance and access the equity markets.
Both the BSE and NSE have launched dedicated SME platforms earlier in the year amidst fanfare after the Sebi gave its nod for such exchanges to boost the small businesses.
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