HERALD: What was the purpose of your visit to Goa?

AJAY THAKUR: BSE has laid the equity culture in India way back in 1875, almost a 140-year journey. Continuing with the same tradition, we became the first exchange to apply to SEBI for launching SME Platform and we became the first exchange not only to get approval but also to launch the SME Platform on March 13, 2012. We as an exchange understand the importance of SMEs to the growth of Indian economy. Goa has got lots of SMEs. We want the SMEs of Goa to get listed on BSE SME Platform and benefit from listing by raising equity funds, create visibility and credibility, strengthen their balance sheet and unlock their value. This will not only help them in their growth, but will also help the economy of the State grow as it will bring about all round development.

HERALD: Do you think that companies in Goa will be interested in listing on BSE?

AT:  We have been doing a lot of awareness programs in Goa for last two to three years. This has yielded good results. Companies are coming forward and I hope in the coming year itself, we will see good number of companies getting listed on BSE SME Platform.

HERALD: How will listing with BSE help these companies in Goa?

AT:  The companies going for listing on SME Platform will get the following benefits; (a) It provides the SMEs with equity financing opportunities to grow their business – from expansion to acquisition; (b) Equity Financing lowers the Debt burden leading to lower financing cost and healthier balance sheet; (c) It expands the investors base, which in turn helps in getting secondary equity financing, including private placement; (d) Enhances company’s visibility:- Media coverage provides SME with greater profile and credibility leading to increase in the value of its shares; (e) Provides an exit option to venture capital participants thus reducing their lock-in period and last but not the least (f) Greater incentive for the employees as they can participate in the ownership of the company and benefit from being its shareholders.

HERALD: What are the basic qualifications for a company to list on the BSE SME Platform?

AT:  The companies desirous of getting listed have to meet the following eligibility criteria: (a) Net Tangible assets of at least Rs 3 crore as per the latest audited financial results; (b) Net worth (excluding revaluation reserves) of at least Rs 3 crore as per the latest audited financial results; (c) Track record of distributable profits in terms of Section 205 of Companies Act, 1956 for at least two years out of immediately preceding three financial years and each financial year has to be a period of at least 12 months. Extraordinary income will not be considered for the purpose of calculating distributable profits. Otherwise, the net worth shall be at least Rs 5 crore; (d) The post-issue paid up capital of the company shall be at least Rs 3 crore; (e) The Company shall mandatorily facilitate trading in Demat securities and enter into an agreement with both the depositories; (f) Companies shall mandatorily have a website; (g) Certificate from the applicant company / promoting companies stating the following: (i) The Company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR); (ii) Note: Cases where company is out of BIFR are allowed; (iii) There is no winding up petition against the company that has been accepted by a court.

HERALD: Do you think Goa, even though it is a tourist destination, is catching up in trade, business and industry?

AT:  There are lot of companies which are in hospitality, services, reality and manufacturing sector in Goa. There are also various clusters where there are many manufacturing companies running. Hence, there is immense potential in Goa where these companies can be channelising to the listing platform of BSE SME and pave the way of growth.