Why SEBI is launching a dedicated digital portal for SMEs
What's the story
The Securities and Exchange Board of India (SEBI) is planning to launch a dedicated digital portal for small and medium enterprises (SMEs). The move comes as part of SEBI's efforts to simplify compliance requirements for SME issuers. Speaking at the India SME Finance & Investment Summit, SEBI Chairman Tuhin Kanta Pandey said they are reviewing the Listing Obligations and Disclosure Requirements (LODR) framework to eliminate redundancy and ambiguity.
Portal details
SEBI to open local offices in state capitals
Pandey said, "SEBI, in coordination with stock exchanges and key stakeholders, is working toward a dedicated SME portal - a one-stop digital gateway with issuer information and clearly mapped compliance guidance." He added that this initiative shall enhance transparency and simplify regulatory processes for issuers. The regulator also plans to open local offices in state capitals to improve access to listing and post-listing processes for SMEs.
Market growth
SME IPOs raised ₹98B in FY25
Currently, over 1,400 SMEs are listed on NSE and BSE with a combined market capitalization of around ₹4.1 trillion. In FY25, 241 SME IPOs raised around ₹98 billion while in FY26 up to January 31, 232 SME IPOs have already mobilized ₹105 billion. Despite this growth, Pandey acknowledged that the SME market remains under-scaled due to factors like unfamiliarity with capital markets, perceived high costs of IPOs, limited access to credible intermediaries, and procedural complexities.
Regulatory actions
Regulatory relaxations misused by some SMEs
Pandey also highlighted past instances where some SMEs misused regulatory relaxations, affecting investor confidence. In response, SEBI has strengthened the SME framework to ensure only companies with sound track records can access public markets. Stock exchanges have also tightened their due diligence and increased engagement with promoters and merchant bankers. They have conducted site visits and deployed AI tools to process draft red herring prospectuses (DRHPs) faster.