BSE Streamlines Listing Process, Grants Approvals to 180 MSMEs in Under Six Months
In a significant move to boost market access for small and medium enterprises, the Bombay Stock Exchange (BSE) has simplified its rules for listing companies and approved 180 MSMEs for stock exchange listing within a span of 179 days. This announcement was made by Sundararaman Ramamurthy, Managing Director and CEO of BSE, during a special seminar held in Coimbatore.
Seminar Focuses on Strengthening MSME Market Access
Ramamurthy was speaking at a seminar titled "Strengthening Market Access for Small and Medium Enterprises," organized by the Coimbatore chapter of the Indian Chamber of Commerce and Industry (ICCI) on Thursday. He emphasized that for the country to progress, all sectors must experience growth, and individuals must earn and reinvest their income. MSMEs are pivotal in this economic framework, with their substantial contributions to India's gross domestic product and export figures.
Critical Role of MSMEs in India's Economy
Highlighting the importance of MSMEs, Ramamurthy provided key statistics:
- There are 7.8 crore MSME units across India.
- They contribute 31% to the nation's GDP.
- MSMEs account for 49% of India's total exports.
- The sector employs 34 crore people, with 39% of them being women.
Despite this massive economic footprint, only about 1,400 MSMEs are currently listed on the stock exchange. Ramamurthy noted that many more have the potential to list, and the simplified norms are designed to address previous challenges that hindered their market entry.
Tamil Nadu's Economic Ambitions and MSME Contributions
Ramamurthy pointed out that Tamil Nadu aims to become a $1 trillion economy, and MSMEs will play a key role in achieving this ambitious goal. In Tamil Nadu alone:
- 61 lakh MSMEs are registered on the Udyam portal.
- They contribute 8% to the state's Gross State Domestic Product (GSDP).
- These enterprises provide employment to one crore people.
While Coimbatore is a leader in engineering and information technology sectors, only a few firms from the region are listed on the stock exchange. The new simplified listing norms are expected to encourage more companies from Coimbatore and across Tamil Nadu to explore public listings, thereby enhancing their growth prospects and contributing to the state's economic targets.
Ramamurthy concluded by reiterating that the streamlined approval process and supportive regulatory environment are crucial steps towards integrating more MSMEs into the formal financial market, fostering broader economic development and innovation.
