subject: Fall In Number Of Listed Smes On The Bse [print this page] According to industry estimates, the number of SMEs listed on the Bombay Stock Exchange (BSE) has plunged by around 11% over last 5 years. Currently, the number of scrips listed on the exchange stand at 7,887, of which 2,814 are of small and mid-sized businesses. However, the number of listed small players stood at 3,174 about5 years ago.
Most of the SME companies listed on the exchanges come under scanner when the latter applies surveillance measures. Therefore, investors maintain a cautious approach while investing in value SME stocks, said S Pachisia, stock broker with the Calcutta Stock Exchange (CSE).
According to analysts, the fall in the number of SMEs listed on the BSE is having a negative impact on the turnover of the stock exchange. BSEs daily trading turnover is estimated to be around Rs 4,723 crore and the existing SMEs that are listed on the trading platform are said to contribute a daily trading turnover of around Rs 505 crore to the BSEs total daily turnover.
Given that there are no rules for the surveillance of these companies by the stock exchanges and the listing guidelines for SMEs are also stringent, retail investors are generally not keen to invest in SME stocks. There are no defined rules for de-listing of SME stocks from exchanges and this raises concern among investors while putting their money in SME firms, said Prem Kumar Bang, a stock trader and retail investor in Mumbai.
Furthermore, absence of any guarantee for the segment in which the SME stocks will remain makes it difficult for investors to bet their money on them.
by: David Parks
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