BSE SME down by 0.30%; Cap of Rs 1 lk on trading keeps investors' sentiments low, say investors
Updated: Jan 04, 2016 11:39:52am
Mumbai, Jan 4 (KNN) The BSE SME opened in red on Monday morning, down by 0.30 per cent. The market capitalization of the bourse fell to Rs 7,109.23 crore.
Out of 119 listed companies, only 12 companies traded actively. There were 4 gainers, 7 losers and 1 firm that traded flat.
However, there are 119 companies listed with the exchange, not many companies actively take part in the trading.
Mohit Shah- CFO, Ashapura Intimates fashion Limited, a company that recently migrated to the main board, told KNN, “BSE has provided us with good platform to come up. It is a good start for the SMEs to make a good gain in terms of turnover.’’
On being asked about the reasons for the low statistic of SME s into trading, Shah asserted the possibility of multiple reasons for the phenomena.
“The SMEs are allowed to trade only over the amount of one lakh which limits the possibility of many of the SMEs to trade in the market. The restriction acts as a prohibition for them,” Shah said.
“Another reason is that there is no visibility of the SMEs in the market,” he added.
Further stressing over the gap in the registered companies and those which trade, Shah proclaimed that the accessibility can be an issue for SMEs. “Many of the SMEs are block listed in big enterprises, that’s why the volume of trade is quite less” Shah said.
“One of the reasons that can explain the issue is that the SMEs have a large lot size” said Vishal Saurabh Gupta, Company Secretary, Tiger Logistics. “In SMEs, we are alleged to buy a minimum of 200 shares . Lesser than that isn’t acceptable for them .However, in big companies doesn’t set any such minimum criteria. A minimum of even 1 or 2 shares can be bought” he added.
Meanwhile, there are more companies in the pipeline to get listed with the bourse. Some of the firms that have filed their DRHP document are – CHD Chemicals Limited; Vidli Restaurants Limited; Octaware Technologoes Limited; Darshan Orna Limited and more. (KNN Bureau)
Out of 119 listed companies, only 12 companies traded actively. There were 4 gainers, 7 losers and 1 firm that traded flat.
However, there are 119 companies listed with the exchange, not many companies actively take part in the trading.
Mohit Shah- CFO, Ashapura Intimates fashion Limited, a company that recently migrated to the main board, told KNN, “BSE has provided us with good platform to come up. It is a good start for the SMEs to make a good gain in terms of turnover.’’
On being asked about the reasons for the low statistic of SME s into trading, Shah asserted the possibility of multiple reasons for the phenomena.
“The SMEs are allowed to trade only over the amount of one lakh which limits the possibility of many of the SMEs to trade in the market. The restriction acts as a prohibition for them,” Shah said.
“Another reason is that there is no visibility of the SMEs in the market,” he added.
Further stressing over the gap in the registered companies and those which trade, Shah proclaimed that the accessibility can be an issue for SMEs. “Many of the SMEs are block listed in big enterprises, that’s why the volume of trade is quite less” Shah said.
“One of the reasons that can explain the issue is that the SMEs have a large lot size” said Vishal Saurabh Gupta, Company Secretary, Tiger Logistics. “In SMEs, we are alleged to buy a minimum of 200 shares . Lesser than that isn’t acceptable for them .However, in big companies doesn’t set any such minimum criteria. A minimum of even 1 or 2 shares can be bought” he added.
Meanwhile, there are more companies in the pipeline to get listed with the bourse. Some of the firms that have filed their DRHP document are – CHD Chemicals Limited; Vidli Restaurants Limited; Octaware Technologoes Limited; Darshan Orna Limited and more. (KNN Bureau)
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