Trading platform for start-ups without IPOs

Mumbai, Feb 11 (KNN)  As an important initiative to help the start-ups access financial markets, the BSE SME today launched Institutional Trading Platform (ITP) which enables such entrepreneurs to list in the market without IPO. Jaysukh Deal became the first company to get listed on ITP and its share was quoted at Rs 40 each in the last price and the trading turnover was Rs 20 lakh.

The market regulator SEBI has already issued the required guidelines for enabling the stock listing on the bourses without IPO.

The benefits which can accrue from such exercise include easy entry and exit options for angel investors, venture capital funds and private equities from the start-ups.

"This new platform will enable SMEs to raise money without having to go through the extensive IPO process," BSE MD and CEO Ashishkumar Chauhan told reporters here after the launch. 

"With an advanced trading platform and better services launch of ITP on BSE SME will complete the products which are valuable to investors and companies," he added. 

As per the regulatory norms, the BSE SME institutional trading platform offers relaxed compliance and cost effective listing to SMEs. The regulator has provided an exemption to SMEs, under which companies have to offer up to 25 per cent of its shareholding through an IPO.