1. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
SME EXCHANGE
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
Lakshminarayanan Alaguraja
Advocate
Altacit Global
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

2. SME EXCHANGE
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
An SME exchange is a stock exchange
Tel: +91 - 44 - 2498 4821
BANGALORE
dedicated for trading the shares of
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
small and medium scale enterprises
(SMEs) who, otherwise, find it difficult
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
to get listed in the main exchanges.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

3. STOCK EXCHANGE
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
A stock exchange provides services for stock
brokers and traders to trade stocks, bonds,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
and other securities. Stock exchanges also
provide facilities for issue and redemption of
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
securities and other financial instruments,
Tel: +91 - 80 - 6546 2400
COIMBATORE
and capital events including the payment of
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
income and dividends. Securities traded on a
Tel: +91 - 422 – 6552921
stock exchange include shares issued by
companies, unit trusts, derivatives, pooled
investment products and bonds.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

4. STOCK EXCHANGES IN INDIA
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
(a) National Stock Exchange (NSE) of
India
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
(b) Bombay Stock Exchange (BSE) of
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
India
# 48, Race Course Road,
(c) Regional Stock Exchanges (RSE) of
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
India
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

5. Over-The-Counter Exchange Of
India - OTCEI
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
The OTC Exchange of India (OTCEI), set up in
1990, was the first exchange for small
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
companies. However, OTCEI was ahead of its
time and some of the modalities were new
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
to the market and were not conducive, and
Tel: +91 - 80 - 6546 2400
COIMBATORE
hence failed.
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

6. INDUSTRY CONCERNS
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
 The cost of raising capital for SMEs is quite high.
Tel: +91 - 44 - 2498 4821
 The current means of financing for SMEs are not adequate
BANGALORE
Suite 920, Level 9, as they do not have easy access to funds from Angel
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Investors, VCs and PE players.
Tel: +91 - 80 - 6546 2400
 Most costs of compliance in raising capital under the
COIMBATORE
BB1, Park Avenue, existing guidelines are fixed. As a result, the costs become
# 48, Race Course Road,
Coimbatore - 641018. burdensome for smaller issues
Tel: +91 - 422 – 6552921
 The SMEs should be provided a framework that would
enable them to raise capital quickly and at a low cost.
 Owing to small size and less affordability, the eligibility
conditions, listing requirements, corporate governance
norms and disclosure standards may need to be suitably
EMAIL
info@altacit.com relaxed for SMEs.
WEBSITE
www.altacit.com

7. INTERNATIONAL EXPERIENCE
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
• Some of the known markets for SMEs are
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
– AIM (Alternate Investment Market) in UK,
BANGALORE
Suite 920, Level 9,
– TSX Ventures in Canada,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001. – GEM (Growth Enterprise Market) in Hong
Tel: +91 - 80 - 6546 2400
COIMBATORE
Kong,
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
– MOTHERS (Market of the high-growth and
Tel: +91 - 422 – 6552921
emerging stocks) in Japan,
– Catalist in Singapore and the latest initiative in
China - Chinext.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

8. SEBI
CHENNAI
3rd Floor, ‘Creative Enclave’,
• “SME exchange” is defined in Chapter XA of the
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004. Securities And Exchange Board Of India (Issue
Tel: +91 - 44 - 2498 4821
BANGALORE
Of Capital And Disclosure Requirements)
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Regulations] as a trading platform of a
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 recognized stock exchange or a dedicated
COIMBATORE
BB1, Park Avenue,
exchange permitted by SEBI to list the securities
issued in accordance with Chapter XA of SEBI
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
(ICDR) Regulations and this excludes the Main
Board (which is in turn is defined as a
recognized stock exchange having nationwide
trading terminals, other than SME exchange).
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

9. TO BE LISTED
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
The post-issued paid up capital of the
company should not exceed Rs. 25 Crores.
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
This means that the SME exchange is not
limited to the Small and Medium Scale
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
enterprises which are defined under The
Tel: +91 - 80 - 6546 2400
COIMBATORE
Micro, Small And Medium Enterprises
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Development Act, 2006 as enterprises where
Tel: +91 - 422 – 6552921
the investment in plant and machinery does
not exceed Rs. 10 crores.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

10. TO GET LISTED IN THE MAIN BOARDS
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
National Stock Exchange, the minimum paid
up capital required is Rs. 10 crores and that
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
of Bombay Stock Exchange is Rs. 3 crores.
Hence, those companies with paid up capital
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
between Rs. 10 crores to Rs. 25 crores has
Tel: +91 - 80 - 6546 2400
COIMBATORE
the option of migrating to the Main Board /
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
or to SME exchange.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

11. DISTINCT BENEFIT
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
SME Exchange has distinct benefit in terms of
Mylapore,
Chennai - 600 004. listing and other fees which would be about half
Tel: +91 - 44 - 2498 4821
BANGALORE
of what the main board charges. SME Exchange
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
will help SMEs towards wealth creation by the
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 SMEs, through inclusive economic growth,
COIMBATORE
BB1, Park Avenue,
unleashing valuations and, also, creating wealth
for all stakeholders, besides considerable income
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
tax benefits and the facility to exit at any point of
time.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

12. MINIMUM SIZE OF IPOS
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
There is need for 50 investors and each shall invest
Rs. one lakh, amounting to Rs. 50 lakhs. This is post
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9, IPO paid up capital on lower side. This includes the
promoter shareholding, besides the investments by
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
the investors. Hence, it can be concluded that the
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
minimum size of the IPO can be less than Rs. 50
Coimbatore - 641018.
Tel: +91 - 422 – 6552921 lakhs also.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

13. DOCUMENTS REQUIRED
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road, • Keeping the Annual Reports on accounts ready
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
• Documenting the Past performance
BANGALORE
• Due diligence on the applicability of various regulations
Suite 920, Level 9,
Raheja Towers, • Due Diligence on the various approvals required from regulatory
26-27, M G Road,
Bangalore - 560 001. bodies
Tel: +91 - 80 - 6546 2400
• Documenting the Risk factors associated with the company
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
• Documenting the External environment effecting the company
Coimbatore - 641018.
Tel: +91 - 422 – 6552921 • Listing out of litigations and documenting its magnitude and
ramifications
• Documenting the Business activity
• Documenting the Material contracts and agreements
• Detailed report on promoters & management
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

14. CONCLUSION
CHENNAI
3rd Floor, ‘Creative Enclave’,
the concept of SME exchange is new to the public
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
and not many SMEs in IT channels know it
thoroughly. It is also clear that listed SMEs will
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers, attract more investors for better access to alternate
funding. Banks, financial institutions will provide
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE them the loans very easily. The major challenge
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
therefore is to instill confidence among SMEs and
Tel: +91 - 422 – 6552921
get them listed. The execution also poses a
challenge where shares listed on the exchanges are
often less known and may also give rise to frauds.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

15. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com