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.

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

India's Capital Market Emerges as Cost-Effective and Inclusive Hub

Ashish Chauhan, Managing Director and CEO of the National Stock Exchange (NSE), highlighted India's emergence as a cost-effective and inclusive capital market in an exclusive interview with ANI.

Chauhan attributed India's success to supportive regulatory reforms and government policies that enable companies of all sizes to access public capital at significantly lower costs compared to global peers.

Key Factors Contributing to India's Success

Supportive Regulatory Reforms: India's regulatory framework has been instrumental in making public markets accessible for all sizes of companies.
Favorable Government Policies: The Indian government has implemented policies that allow companies to access public capital at lower costs, making it easier for startups and emerging businesses to raise funds.
Efficient SME Platform: India's SME platform has successfully provided access to equity capital beyond large corporations, making it a unique market leverage.
Robust Ecosystem: A robust ecosystem of merchant bankers, legal advisors, and compliance professionals specializing in SME listings has contributed to the success of India's SME platform.

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, with the listing cost in India often ranging from 5 to 10 percent of the capital raised.

International Comparisons

While international markets like London's AIM and Japan's exchanges have struggled with SME platforms, India's has gained significant traction, thanks to its efficient SME platform and favorable regulatory environment.

The success of India's SME platform is supported by regulatory support from SEBI and favorable government policies, making it a unique hub for cost-effective and inclusive capital markets.