SIDBI working with NSE to set up separate exchange for SMEs

The Small Industries Development Bank of India (SIDBI) is working in close tandem with the National Stock Exchange (NSE) to establish a separate exchange for small and medium enterprises (SMEs), which will be unveil shortly.

S Muhnot, Chairman and Managing Director of SIDBI, said, “It will be a separate exchange within the NSE. It is likely to be operational in this financial year, may be another two months or three. The international venture funds, which are not coming to the MSME (Micro, Small and Medium Enterprises) sector today, will also come in the sector.” The SMEs would have the potential to secure equity from the market via the exchange and also develop their business.

Mr Muhnot has stated that SIDBI has been working to get the firms into the exchange. SIDBI has stated that it will unveil Nominated Investors Liquidity Fund, which will be helping these market makers.

Mr Muhnot has also stated that the Nominated Investors Liquidity Fund of nearly Rs 60 crore will be unveiled this year. The second fund will be India Opportunities Fund worth Rs 500 crore. Discussion for the third fund is taking place and it is expected to be worth Rs 300 crore.