BHUBANESWAR: Struggling to raise capital for their business growth, the small and medium enterprises (SMEs) are in for a major boost with the country’s premier bourse Bombay Stock Exchange announcing readiness to launch a dedicated exchange for the small industries sector. The BSE SME Exchange has got all the necessary approvals and is set to go operational from September this year. The BSE has started a nationwide exercise through seminars and workshops to educate shareholders, market intermediaries and investors on the importance of listing SMEs on the exchange platform, CEO BSE SME Exchange Lakshman Gugulothu told mediapersons here on Tuesday. The BSE SME platform will provide a great opportunity to the entrepreneurs to raise equity capital for growth and expansion. There have been traditional ways of funding available to SMEs but a dedicated exchange will help them in finding solutions to their financial requirements and expansion plans. Listing of a company on the exchange would enhance the valuation of the company while improving the debt and equity ratios to give a healthy balance-sheet, Gugutholu said. The listed enterprises would have easy accessibility to alternate funding options as banks and other financial institutions will have no hesitation in offering loans. They would also gain better visibility among investors. The tax benefits would be greater as listed companies would not have to pay long-term capital gains tax whereas unlisted ones would attract tax at the rate of 10 per cent. The SMEs will have better opportunities to grow on two platforms - Capital market and banking. Gugulothu, who took part in the MSME Summit 2011 here on Tuesday, said that the initiative aims at promoting financial inclusion and facilitating development and enhancing competitiveness of micro, small and medium enterprises. Beginning the series of seminars from Kolkata on June 29, the programme has covered New Delhi, Pune, Rajkot and on Tuesday Bhubaneswar.
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