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Informist, Monday, Sep 2, 2024

 

--NSE Chauhan: Perception of some fly-by-night SME listings correct

--CONTEXT: NSE MD Ashishkumar Chauhan at CII Financing 3.0 Summit

--NSE MD: Need to balance jump in fund raising by SMEs with quality

 

MUMBAI – The runaway growth in fundraising by companies through small and medium enterprise segment listings on stock exchanges should be balanced with quality, according to National Stock Exchange of India's Managing Director and Chief Executive Officer Ashishkumar Chauhan. Speaking at the Confederation of Indian Industry's Financing 3.0 Summit, Chauhan said the market must not see a repeat of the 'vanishing companies' cases seen during the mid-1990s when a spate of new listings took place on the main board of the stock exchanges and later the companies were not found at their registered office addresses. 

 

In recent months, reports of runaway growth in funds raised by companies have raised the hackles of regulators. The Securities and Exchange Board of India has also passed some orders against companies and promoters found in breach of rules. This perception of some potentially fly-by-night cases in the SME segment of stock exchanges is correct, Chauhan said. However, it is not easy to balance the need of allowing SMEs to fund themselves and grow through the capital market with quality concerns and investor protection, Chauhan said.  End

 

Reported by Rajesh Gajra

Edited by Namrata Rao

 

 

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