SME PLATFORM
significant stakes in companies Nominated Investor will be attractive to VCs/ PEs and PIPE investors with medium to long term invest interest Investors could get VC kind of opportunities
(alpha return opportunity) HNI investors could invest along with experienced risk investors Platform will provide higher liquidity (vis a vis private space) with daily liquidity windows
Merchant Bankers Same as Main Board (SEBI registered) No separate class of merchant Banks
Obligations 100% u/writing (15% in own books) To Ensure 3 year market making Can tie up with Nominated Investors for underwriting and market making
DRHP in same format Only exchange observations on prospectus No grading requirement min 50 allottees Min application size : Rs 1 lakh (can be higher) Hard underwriting of IPOs Nominated Investors could give commitment for subscription
MAIN BOARD
SME PLATFORM
WHY LIST ?
Recognition & Visibility Clients, Vendors & community Long term Capital for growth Capital for innovation and research Improves leverage ESOPS to attract and retain Stock as currency for acquisitions
Exit & Liquidity for early stage Investors/ VCs Wealth creation for shareholders
Merchant Bank Due diligence Merchant may Bank require Due Exchange additional diligence third party diligence
Exchange approval
In-
principle
Final approval
Submission of final prospectus with details of underwriting & market making arrangements Final approval accorded by exchange
Exchange will examine DRHP and conduct management discussion Provide observations/ seek clarifications In-principle approval
Transparent
Efficient
Credible
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Voluntary adoptions Going forward : Voluntary adoption of measures to inspire investor confidence:
IPO Grading
Though not mandatory, IPO grading will demonstrate transparency and add credibility to the issue
A reporting agency (PCS or PCA) could be identified by issuer/ merchant banker to report the end use of the IPO proceeds to investors.
NSE will launch a tailor made certification module to ensure that the compliance officer/ CFO of the issuer is well versed with compliances and obligations of a listed company. Availability of the CEO for interaction with analysts and research agencies and for sharing information on the companys performance regularly.
CFO Certification
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Continuous market
Call auction
Each SME scrip will trade in either continuous or auction market. Based on expected investor profile and liquidity levels, Merchant bank/ issuer can opt for any one system
SME PLATFORM
Stakeholders in the journey
SME PLATFORM
SME Stakeholders
Banks & Institutions
Emerging SME Companies Risk Investors ,including VC community SME Advisors Intermediaries
Merchant banks Market Makers
Media
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Thank You
NATIONAL STOCK EXCHANGE OF INDIA LIMITED Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai 400051, India Tel: + 91 22 26598100/ 66418100 Fax: + 91 22 26598120 Web Site: www.nseindia.com
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