DETAILED STUDY ABOUT SME EXCHANGE ( SMALL & MEDIUM ENTERPRISES EXCHANGE) - HOW IT IS BENEFICIAL TO SME’s IN INDIA DETAILED STUDY ABOUT SME EXCHANGE ( SMALL & MEDIUM ENTERPRISES EXCHANGE) - HOW IT IS BENEFICIAL TO SME’s IN INDIA DETAILED STUDY ABO

G Vairava Subramanian

Abstract


The Indian SME sector has been growing rapidly, particularly in the last decade,   SMEs have made very significant contribution to the overall economy which has started impacting the Indian GDP. SMEs have become inevitable part of India’s Growth story and cannot be neglected any more in the coming years largely due to its contribution to the Nation by way of employment, revenue, and growth. Not only that,  ever since the globalization  process commenced in  India from 1991, the country was exposed to opportunities for  exporting the products and services globally which is true for the SME sector also. At the same time, globalization has also brought  upon India the external influences, i.e. the economic disturbances in other countries  does have an impact on the Indian economy.  The Global Economic Melt down of 2009 has made India understand that though insulation in economy and country as whole is there, one cannot avoid the external shock. Changes in the global economy will have cascading effect on India too. More than 16% of the Indian SMEs have either shut down their business or have incurred losses in their business as a consequence of the 2009 meltdown of the economy. The Indian Banking system has not come forward to support the SMEs during that time, due to the stringent guidelines by RBI and resulting factor was lot of unemployment, closure of units with SMEs entering in to a debt trap. Taking the above scenario in to consideration, the Government of India started giving very serious thought for insulating the SME sector financially and creating an atmosphere for good corporate governance.

This thought process has brought in first of its kind in India ‘SME EXCHANGE’. In this article, we wish to elaborate the concept of SME exchange, guidelines for listing in the exchange, rules & regulations to be adhered by the SME, need for an  SME exchange, benefits, opportunities, compliance, appointment of merchant bankers, guide lines for merchant bankers & how the SMEs can take mileage out of this SME Exchange.  We are also examining as to how Small and Medium industry  can experience a turnaround if SME exchange concept is successful both at the level of implementation and sustainability.


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ISSN : 2251-1555