India's Capital Markets Propel SMEs with Cost-Effective Access

NSE MD and CEO Ashish Chauhan emphasizes India's cost-effective and inclusive capital market for SMEs. He highlights regulatory reforms, policy support, and a conducive listing environment that contrasts with higher costs in developed markets. India's SME exchanges offer viable equity capital access, broadening opportunities beyond large corporations.

In an exclusive interview with ANI, Ashish Chauhan, Managing Director and CEO of the National Stock Exchange (NSE), highlighted India's emergence as a cost-effective and inclusive capital market, particularly for Small and Medium Enterprises (SMEs). He attributed this to supportive regulatory reforms and government policies that allow companies of all sizes to access public capital at significantly lower costs compared to global peers.

Chauhan pointed out that in developed markets like the U.S., the total cost of listing can be prohibitively high for smaller firms, making public fundraising economically unviable. Conversely, Indian companies raising modest sums can do so without disproportionate expenses. The listing cost in India often ranges from 5 to 10 percent of the capital raised, making public markets accessible for startups and emerging businesses.

India's unique market leverage comes from its efficient SME platform, which has successfully provided access to equity capital beyond large corporations. While international markets like London's AIM and Japan's exchanges have struggled with SME platforms, India's has gained significant traction. This success is supported by a robust ecosystem of merchant bankers, legal advisors, and compliance professionals specializing in SME listings, along with regulatory support from SEBI and favorable government policies.

(With inputs from agencies.)