Large lot size can be accounted for the lesser trading SMEs on BSE SME
Updated: Dec 29, 2015 10:53:45am
New Delhi, Dec 29 (KNN) Offering the entrepreneurs and investors a friendly environment, BSE SME has provided a platform which enables listing of SMEs from the unorganized sector scattered throughout India, into a regulated and organized sector. However, very few of the registered companies are actively involved in trading.
The market statistics publicized by the organisation stated that out the 118 companies that has been registered till date, only 32 are has been trading keenly.
KNN talked several enlisted SMEs to sought for the reasons behind this huge gap. “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’’ said Mohit Shah- CFO, Ashapura Intimates fashion Limited. The company recently migrated to the main board.
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 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/ J)
The market statistics publicized by the organisation stated that out the 118 companies that has been registered till date, only 32 are has been trading keenly.
KNN talked several enlisted SMEs to sought for the reasons behind this huge gap. “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’’ said Mohit Shah- CFO, Ashapura Intimates fashion Limited. The company recently migrated to the main board.
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 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/ J)
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