BSE SME up by 0.06%; merely 7 out of 108 listed cos active in morning trade

Mumbai, Feb 9 (KNN) The SME exchange of BSE was trading in green on Tuesday morning up by 0.06 per cent. The market capitalization of the bourse was at Rs 7,110.02 crore.

However, out of 108 listed companies merely 7 firms traded actively. There were 5 gainers and 2 losers in today’s trading.

The market capitalization of 21 companies listed with the ITP platform of the bourse was Rs 5,777.76 crore.

Talking to KNN Mohit Shah, CFO, Ashapura Intimates Fashion Limited, said “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.”

The company recently migrated to the main board, he said.

On being asked about the reasons for the low statistic of SMEs 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 told us.

“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. (KNN Bureau)