Sinha promises changes to help SME sector
9 Oct 2014 11:59 PM GMT
Sebi Chairman U K Sinha on Wednesday said that he was taking serious measures to help the SME sector in raising finances as earlier initiatives in 2003 and 2009 were not successful, but a new set of measures taken in early 2012 had borne fruit. In a span of two years, 71 companies got listed on the SME platform and raised finances of about Rs 600 crore. By a thumb rule, the market capital of these companies was Rs 2500–Rs 3000 crore.Â
Inaugurating CAPAM 2014 organised here by Federation of Indian Chambers of Commerce and Industry(FICCI), Sinha said 'To my mind, while the promoters are willing to put in money, their full potential is not being realised whether it is sales or profit growth because they have a very serious problem in raising finances when they need it. Keeping this in mind, Sebi came out with a set of regulations about an SME platform.' Sinha said he was happy to note that there is hugely optimistic mood in the country as compared to the sentiment during last year’s conference.
'The lowest figure of growth projection is now 5.5 per cent, with WB and IMF figures of 5.6 per cent — despite forecasts of a mediocre global growth rate. Look at our markets. In one year, the returns are about 30%. FII flows during the current year have been around 34 billion dollars; and in the financial year clearly it has been about 25 billion dollars. Going by the trend I wouldn’t be surprised if we end the current year by an all time record number. This is a remarkable thing for our country to have achieved in less than one year,' he said.
Inaugurating CAPAM 2014 organised here by Federation of Indian Chambers of Commerce and Industry(FICCI), Sinha said 'To my mind, while the promoters are willing to put in money, their full potential is not being realised whether it is sales or profit growth because they have a very serious problem in raising finances when they need it. Keeping this in mind, Sebi came out with a set of regulations about an SME platform.' Sinha said he was happy to note that there is hugely optimistic mood in the country as compared to the sentiment during last year’s conference.
'The lowest figure of growth projection is now 5.5 per cent, with WB and IMF figures of 5.6 per cent — despite forecasts of a mediocre global growth rate. Look at our markets. In one year, the returns are about 30%. FII flows during the current year have been around 34 billion dollars; and in the financial year clearly it has been about 25 billion dollars. Going by the trend I wouldn’t be surprised if we end the current year by an all time record number. This is a remarkable thing for our country to have achieved in less than one year,' he said.
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