Capital Market Access to Small and Medium Enterprises (SMEs): Evidence from Indian Stock Market

The aim of this research paper is to analyse the growth and development of the SME Platform in India. Lack of adequate and timely credit to SMEs is a major hurdle in SME growth trajectory. To resort this perennial issue various measures has introduced, but they fail to produce the desired result. The idea to provide capital market access to SME ended with the establishment of a dedicated stock exchange. SME Platform is the emerging financial source for small business entities after premature death of OTCEI. An emerging economy, like India must have a platform for a more enhanced equity market for SMEs. The new initiative of capital financing of SMEs through capital market has been quite encouraging and would be supplemented to the banking credit. SEBI’s guidelines and the development progress of SME platform is similar to the successful international experiment in particular to AIM, MOTHER and NASDAQ. This paper fortifies the potential growth for SME Platform in India by analyzing the performance of SME Exchange of BSE and relaxed trade norms of SME Platform.