25% reduction in listing fees of SME sector companies: Ease of bringing in IPO

So far in 2020, 10 SME companies entered the capital market with IPOs out of which 3 companies entered the capital market only during lockdown i.e. in the month of April.

Following the announcement of a relief package by the government to revive the SME sector, which was paralyzed due to the lockdown, the country's two leading stock exchanges have now decided to reduce the listing fees of companies in the SME sector by 25 per cent.

According to the stock exchange, the move will provide a lot of relief to SME companies entering the capital market. The new revised fee structure will apply to existing companies as well as companies seeking new listings.The government is gearing up to keep small businesses afloat in the current difficult times. As part of the exercise, stock exchanges have reduced the listing fees of companies in the SME sector. This will make it easier for companies in the sector to enter the capital market and raise funds, and more companies will turn to this route.

So far in the current calendar year 2020, 10 SME companies have entered the capital market with IPOs. 3 out of 10 of these companies entered the capital market at the time of lockdown i.e. in the month of April.