Eighteen companies to migrate to BSE main board from SME platform

Indian Small and Medium Enterprises (SME) is a dynamic sector and backbone of the Indian economy, which contributes about 8 per cent to the GDP and provides employment to over 80 million people. It also contributes 45 per cent to the total domestic production of India and 40 per cent to the exports. SMEs are complementary to large industries as ancillary units and it helps to lower capital cost as compared to large industries, which leads to industrialization of rural areas.  Despite their capabilities to grow, SMEs in India are also facing lot of problems such as lack of capital, supply chain inefficiencies, increasing competition, skilled manpower, etc. To survive under such cut throat competition with large and global enterprises, they need to adopt innovative ideas in their operations.

To promote and develop the small industries Government has introduced The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. In 2010, Prime minister has also recommended SEBI to set-up a dedicated stock exchange or platform for SMEs. As per the rules and regulations laid down by SEBI, BSE has set up the BSE SME Platform in 2012. BSE SME Platform offers an entrepreneur and investor friendly environment. SME platform helps to raise capital for further growth and development of the listed SME. Also in due time it enables SMEs to migrate into the Main Board of BSE. SME platform also provides a  good opportunity to investors to invest in good SME companies at an early stage.

In the past three years, 94 companies have listed on the BSE SME platform and 6 companies have migrated to the main board. According to existing norms, companies that have completed two years on the SME platform and companies with a paid-up capital of between Rs 10 crore and Rs 25 crore have the option of moving to the mainboard. Recently in the month of February three enterprises namely Bronze Infra-Tech, Anshu's Clothing and SRG Housing Finance have been migrated from the BSE SME platform to the BSE main board.

As per the media reports BSE has received more than 32 proposals to get listed on the SME platform. Earlier it was reported that BSE was targeting 100 companies on its SME platform till March 2016. It is quite clear that BSE is aiming to increase its daily turnover to Rs 75 crore, which is currently Rs 25-30 crore. BSE also informed that 18 more SMEs are likely to migrate to the main board till March 2016.