On May 18, 2020 BSE ( formerly known as The Bombay Stock Exchange )and National Stock Exchange(NSE) announced that they will reduce the annual listing fee by 25% for Small and Medium Enterprises(SMEs) companies, it is as a part of their attempts to lower the compliance costs for companies during the ongoing COVID-19 pandemic. These steps will help to revive the SMEs & encourage thousands of SMEs to go for listing
Major Highlights
- NSE will provide the rebate to all its existing listed companies currently listed on its EMERGE platform.
- BSE will provide the rebate to its currently-listed companies & for all the firms waiting to be listed on the exchange
Key Points
i.In total there are about 322 SMEs listed on the BSE platform & 79 companies, which have migrated to the main board. All the SMEs have raised Rs.3278.84 crores from the market and the total market capitalization of these companies is Rs 15,865.39 crore as on 17 May 2020.
ii.There are 209 companies listed on NSE SME platform Emerge & have raised a combined of more than Rs 3200 crore as on May 18, 2020.
iii.BSE and NSE had launched their respective SME platforms in 2012 and since then they have been facilitating SMEs for raising funds, listing and trading on the exchanges.
Background
The fee rebate has been declared following Finance Minister Nirmala Sitharaman’s several announcements to rescue the ailing Micro, Small, and Medium Enterprises(MSME) sector.Â
About BSE:
Headquarters– Mumbai, Maharashtra
Managing Director(MD) & Chief Executive Officer(CEO)– Ashishkumar ChauhanÂ
About NSE:
Headquarters– Mumbai, Maharashtra
MD and CEO– Vikram Limay
