BSE and NSE are all set to launch the SME stock exchange. It is going to serve as a perfect trading ground for the SMEs. The BSE has taken an initiative to woo SMEs in Coimbatore region by organizing a meeting to spread awareness about the Exchange proposal.

Coimbatore has a very large concentration of SMEs. BSE and NSE did not hold any meeting here as of now though the exchange formation seems to be just weeks away. Some industrialists are found not to be willing to list their company in the exchange for they fear that by doing so they may lose control over their family-run business. The awareness meet will help to remove all form of doubts.

BSE has requested for an awareness meet about ‘SME exchange’ at Coimbatore to the Indian Chamber of Commerce and Industry (ICCI). The ICCI President, M. Krishnan, leaked this information. BSE already conducted programmes in Northern India, Western India, Hyderabad and Chennai. A similar meeting is now sought to be held at Coimbatore. The Coimbatore SMEs would benefit a lot by listing shares in SME exchange as then Fund raising becomes easy.

Small companies do not enjoy the advantage of cheaper source of finance through debt market as bigger companies do. Moreover, they have to convince banks to lend. Now, exposure in the SME exchange will help Small Companies overcome this hurdle.