Tamil Nadu may be home to thousands of small and medium enterprises (SMEs), but when it comes to raising funds through bank loans, firms continue to face a challenge. To address this, the Tamil Nadu government is looking at pushing such firms to raise funds through listing their shares on the SME platform of the BSE (formerly Bombay Stock Exchange) and the National Stock Exchange (NSE). This platform, available on the BSE since March 2012, is looked as an alternative to the hurdles to raising bank loans.
The government has been providing assistance for listing and raising money in SME stock exchanges with a maximum subsidy of ₹30 lakh towards total expenditure incurred on SME initial public offering. In the current year, ₹1 crore has been allocated for the scheme.
