Question

    Which of the following are the stock exchanges for SME in India?

    A BSE EMERGE Correct Answer Incorrect Answer
    B NSE EMERGE Correct Answer Incorrect Answer
    C BSE SME Correct Answer Incorrect Answer
    D Both a and b Correct Answer Incorrect Answer
    E Both b and c Correct Answer Incorrect Answer

    Solution

    Almost all major capital markets have realised the need for a separate exchange for SME segment (Small and Medium Enterprises). More than 20 countries have separate platforms for this segment. These markets have tried to create a a market architecture conducive for this specific segment. As SME is very significant for country's industrial activity, the BSE and the NSE launched their platform for small and small and medium enterprises to list on the BSE and the NSE and later migrate to the main board of the BSE and NSE without the need to make an initial public offering. The BSE SME and NSE Emerge are a new source for SME IPOs and provide a listing opportunity to the SMEs with minimum compliances and cost compared to the main board. SMEs are spread across diverse sectors and are fast emerging as an alternate asset class for investors.

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