Calcutta, Feb. 10: The launch of a trading platform for small and medium enterprises (SME) on the BSE has been delayed as companies that plan to come up with initial public offerings are taking time to complete the audit process.
The Bombay Stock Exchange (BSE) got the approval of the Securities and Exchange Board of India (Sebi) to launch the platform in September last year.
According to Laxman Gugulothu, the chief executive officer of the SME exchange, the BSE was not interested in a "notional launch" of the platform.
"The entire process of due diligence, particularly the legal aspects and the auditing process for some of these companies are taking time," Gugulothu said on the sidelines of a CII summit here today.
According to the norms of the market regulator, besides providing detailed disclosures about the profile of a company (including future strategy), the small and medium enterprises need to have due diligence on various approvals they must have from the regulatory bodies.
Gugulothu further said tax incentives such as waiving the securities transaction tax (STT) would make the platform more popular and user-friendly.
STT is paid on any transaction (buy or sell) that takes place on the exchange.
Gugulothu hopes the trading platform is likely to be launched over the next six weeks.
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