DSE’s SME exchange is worthy of applause, but they have to avoid becoming OTCEI
It was like a dream come true for many of the small and medium enterprise (SME) owners whom we came across when they heard that Delhi Stock Exchange (DSE) is planning to get back to business with focus on specialised services for SMEs (subject to SEBI approval). And why not, for this can provide them with a much needed platform to raise capital, their biggest problem so far in their vision for a dream enterprise.
But then, they should be warned by history. A similar concept was introduced in 1990, named OTCEI (Over-The-Counter Exchange of India). Today, it writes (very proudly) in its website, “As a measure of success of these efforts (introduction of screen-based nationwide trading, market making and scrip-less trading), the exchange has 115 listings.” Superb! 115 listings in 19 years. Perhaps, that’s why many don’t even remember that OTCEI still exists!
With a live example of disaster, why is DSE interested in setting up a SME exchange? Answers B. K. Sabarwal, Director, DSE, “A recent survey has revealed that 92% of unorganised enterprises in India do not receive financial assistance from banks or from any other source... An exchange is the best way to make them competitive.” Moreover, DSE is not only looking forward to the opportunity present in India’s 13 million (approx.) SMEs; it has adopted the model of London-based Alternative Investment Market (AIM)). Certainly a great idea, considering that it has 3,075 listings and raised $104 billion since its inception in 1995. But, only by following AIM, the job can’t be done successfully.
It was like a dream come true for many of the small and medium enterprise (SME) owners whom we came across when they heard that Delhi Stock Exchange (DSE) is planning to get back to business with focus on specialised services for SMEs (subject to SEBI approval). And why not, for this can provide them with a much needed platform to raise capital, their biggest problem so far in their vision for a dream enterprise.
But then, they should be warned by history. A similar concept was introduced in 1990, named OTCEI (Over-The-Counter Exchange of India). Today, it writes (very proudly) in its website, “As a measure of success of these efforts (introduction of screen-based nationwide trading, market making and scrip-less trading), the exchange has 115 listings.” Superb! 115 listings in 19 years. Perhaps, that’s why many don’t even remember that OTCEI still exists!
With a live example of disaster, why is DSE interested in setting up a SME exchange? Answers B. K. Sabarwal, Director, DSE, “A recent survey has revealed that 92% of unorganised enterprises in India do not receive financial assistance from banks or from any other source... An exchange is the best way to make them competitive.” Moreover, DSE is not only looking forward to the opportunity present in India’s 13 million (approx.) SMEs; it has adopted the model of London-based Alternative Investment Market (AIM)). Certainly a great idea, considering that it has 3,075 listings and raised $104 billion since its inception in 1995. But, only by following AIM, the job can’t be done successfully.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human FaceProf. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
