ABOUT SME LISTING
The Indian Small and Medium Enterprises (SME) sector has always served as a safety net for the Indian economy, allowing it to adapt to global economic shocks and adversities. Over the last five decades, it has evolved as a very lively and dynamic sector of the Indian economy.
SMEs not only play an important role in offering significant job possibilities at a cheaper capital cost than major enterprises, but they also contribute to the industrialization of rural regions. The Indian MSME sector is the backbone of the national economic structure, with 36 million units and more than 80 million people employed as of today. The sector, which includes over 6,000 items, provides around 8% of GDP, as well as 45 percent of overall industrial production and 40 percent of total exports from the country.
The Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006 provided for enabling the promotion and development of MSMEs (often referred to as SMEs) and boosting their competitiveness, among other things. Given the importance of SMEs in nation building and its potential for creating employment and revenue as well as promoting innovation and enterprise, it was critical that the appropriate enabling environment be created for these businesses to thrive.
The Prime Minister's Task Force suggested in January 2010 the establishment of a separate Stock Exchange/Platform for SMEs. SEBI has also established laws for the governance of the SME Platform. The Bombay Stock Exchange and the National Stock Exchange have developed BSE SME Platform and EMERGE, respectively, to support this endeavour. The stock exchanges are always trying to provide the platform most suited for firms to grow from small to large by raising funds from the capital market.