Strengthening the Backbone of Indian Econonny: SME Exchange in India, a Global Comparative Study

Abstract

More than ]6% of the Indian SMEs have either shut down their business or have incurred losses in their business as a consequence of the 2009 meltdown of the economy. The Indian Banking system lagged in its support to SMEs during that time, resulting in unemployment, closure of units with SMEs entering in to a debt trap. Eligibility norms for further capital raising may need to be revisited from the perspective of SMEs. The SME Model Listing Agreement needs to be further simplified in relation to the post-listing compliance requirements. The establishment of the ITP is a step in the right direction. SEBI's recent initiative in providing an impetus to the SME sector by establishing a dedicated platform for the listing and trading of their securities is laudable. As is true of all new reforms and initiatives, there will always be varied critiques on how the structure could be improved.