Define the following terms: SME Exchange.

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2017
Define the following terms: SME Exchange.

Answer & Explanation:

In recognition of the need for making finance available to small and medium enterprises, SEBI has decided to encourage promotion of dedicated exchanges and/or dedicated platforms of the exchanges for listing and trading of securities issued by Small and Medium Enterprises ("SME"). Consequently, SEBI amended SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 by inserting Chapter XB on "Issue of specified securities by small and medium enterprises", with effect from 23.9.2011. "SME Exchange" means a trading platform of a recognized stock exchange having nationwide trading terminals by Stock exchange to list the specified securities issued and includes a stock exchange granted recognition for this purpose but does not include the Main Board. 'Main board' means a recognized stock exchange having nationwide trading terminals other than SME exchange.

Topics: Capital Markets

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