DSE to become bourse for SMEs in revival bid

Struggling to revive its fortunes, the Delhi Stock Exchange (DSE) will explore ways to convert itself into a bourse for small and medium enterprises (SMEs) to resume trading, which has stopped since 2003 due to new market conditions.

The local bourse will explore the conversion once it sells 51% of brokers’ stake in the exchange by 28 August as required under the demutualisation process.
“DSE is fully geared to take up the role of SME exchange and after demutualisation we will be approaching Sebi in this regard,” DSE director and chairman, Demutualisation Committee, B B Sahny told PTI.

He also dismissed as speculation reports in some quarters that DSE would convert itself into a commodity exchange.Sahny exuded confidence that its effort to become an SME exchange would bear fruit, as even today 1,800 companies are exclusively listed with the DSE out of a total 3,000.

When asked that moves are already afoot to bring in a dedicated exchange for SMEs, he said instead of bringing new exchange for the purpose, DSE could handle the job as it already has infrastructure for that.To a query whether DSE would try to rope in other bourses for the SME exchange, he said initially it would be the local bourse on its own. “Other options could be explored later,” he said.

Sahny emphasised that an exchange for SMEs has to be outside Mumbai as some earlier attempts in this regard have failed since the exchanges were in Mumbai.

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