Market regulator SEBI is planning to allow multiple stock exchanges or dedicated platforms by existing stock exchanges for listing of shares by small and medium enterprises (SMEs), a top official said.
The proposed SME exchanges will list shares of small and medium sized companies having a post-issue paid-up capital of up to Rs 25 crore. The trading lot on these exchanges, however, would be Rs 1 lakh.
SEBI Chairman C B Bhave told reporters today that based on feedback received, its Board has decided that an SME exchange can be either a new one or a dedicated platform of an existing stock exchange.
When asked as to who can apply to start a new SME exchange, Bhave said SEBI would soon declare an eligibility criteria and come out with a suitable framework for recognition and supervision of such exchanges\platforms.
"Multiple exchanges or platforms would provide the necessary competition in this space," a press note released by SEBI after its Board meeting said.
Meanwhile, in an another decision taken today by SEBI, a select group of entities has been allowed to hold 15 per cent shares in a stock exchange against the five per cent at present.
SEBI said the new measure is meant to encourage competition in the exchange space. In all, six categories will be allowed to increase their holding in a stock exchange.
These are public financial institutions, stock exchanges, depositories, clearing corporations, banks and insurance companies.
The decision is expected to help foreign bourses that have taken five per cent equity in the BSE and NSE and are keen to increase it.