Capital Market Access to Smes in India

18 Pages Posted: 12 Feb 2007

Date Written: December 18, 2006

Abstract

The Over The Counter Exchange of India (OTCEI) was setup with the astute vision of providing equity market access to SMEs in India. However, it failed to stand the tests of time. OTCEI was hailed to be ahead of its times yet it was eventually a failure in financial institution building. Years after OTCEI was setup, the original motivation for setting up such a platform still holds good. With abounding enablers for the success of the idea, the design merits attention.

The paper reinforces the significance of SMEs, the need to setup capital market access for SMEs and delves particularly into the case for equity market access. A solution is sought to reinvent the equity market access for SMEs. OTCEI is revisited; lessons are also drawn from similar successful international experiments- in particular, AIM and NASDAQ. Keen attention to the required market microstructure has been paid, policy issues have been looked into and an overall strategy for resurrecting the equity market platform for SMEs in India has been formulated.

Keywords: Capital Markets, Small and Medium Enterprises, Stock Exchange, Market Micro Structure, Venture Capital & Private Equity

Suggested Citation

Banerjee, Ayan A., Capital Market Access to Smes in India (December 18, 2006). 10th Indian Institute of Capital Markets Conference Paper. Available at SSRN: https://ssrn.com/abstract=962033 or http://dx.doi.org/10.2139/ssrn.962033

Ayan A. Banerjee (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

Register to save articles to
your library

Register

Paper statistics

Downloads
872
rank
25,859
Abstract Views
3,921
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information