Wednesday, August 3, 2011

Seminar on “BSE-SME Exchange & IPR”

Hyderabad (02nd August, 2011)

The Seminar on BSE-SME Exchange & IPRstarted off at Federation House, Red Hills, Hyderabad. The seminar was inaugurated by Mr. Karikal Velavan, IAS, Commissioner of Industries, Government of Andhra Pradesh. Mr. Lakshman Gugulothu, C.E.O, BSE SME Exchange, Mr. V.S. Raju, President, FAPCCI, Mr Manjit singh, Vice President and Mr. V.Madhusudhana Rao, Vice President (Investment Banking), Karvy Consultants, Dr N. Srilakshmi, Head C- LAIMS & IPFC, Ni- MSME, Mr Devendra Surana , Sr. Vice President , Mr Srinivas Ayyadevara, Vice President , Mr M.V. Rajeshwara Rao, Secretary General & Past Presidents and Managing Committee Members from FAPCCI and many businessmen’s are participated at the seminar.

Mr. Karikal Valavan, said in his Chief Guest address is that the “BSE SME Platform provides a great opportunity to the entrepreneurs to raise the equity capital for the growth and expansion of SMEs. It also provides the immense opportunity to the investors to identify and invest in the good companies at early stage. It will help unleash the valuation of the company and in the process create wealth for all the stakeholders including investors, besides considerable long term capital gains tax benefits and facility to exit at any point of time”.

Mr. Laxman Gugulothu, said in his key note addressed on “Raising of Equity Capital and Listing of SMEs on BSE SME Exchange”. He said that the new thing about the SME Exchange is that the issue will be 100% underwritten and this means that the issue will be 100% success. Other new aspect is that there will be support of three years in the secondary market through market making activity. The SMEs with paid up capital up to Rs. 10 crores can come on the SME Exchange, in contrast to the paid up capital of Rs. 10 crores or more for the main board. The Listing norms have been simplified. The issuer has to take the approval of the Exchange and SEBI approval is not required. A copy of the offer document will be sent to the SEBI for their information. The Compliance norms are simplified. Half yearly compliance is required instead of quarterly compliance.

The abridged version of the annual reports need to be sent to the investors instead of the entire annual report and posting the soft copy of the report on the website is sufficient. The issue expenses will be minimal on the marketing and stationery. However, the issue will be charged for underwriting, sub-underwriting and responsibility of three years market making. Market making is compulsory for 3 years, unlike on main platform. Listing fees on BSE SME platform are minimal compared to the main board. The SMEs with the paid up capital between Rs. 10 crores and Rs. 25 crores has the option to get listed either on main board or on the SME Exchange.

Mr. Manjit Sing, Vice President (Compliance) Karvy Investor Services Ltd explained about the “Role of Merchant Banker and Compliances”.

Mr. VS Raju said in his welcome address is that the BSE - SME platform provides a great opportunity to the entrepreneurs to raise the equity capital for the growth and expansion of SMEs. It also provides the immense opportunity to the investors to identify and invest in the good companies at early stage. It will help unleash the valuation of the company and in the process create wealth for all the stake holders including investors, besides considerable income tax benefits and facility to exit at any point of time.

Mr. Raju also said that the SME sector plays an important role in the economy and employment generation. SME sector employs about 70 % of the man power in the industry sector and supports the Large and medium industry sectors in achieving the industrial growth in the country.

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