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National Stock Exchange (NSE) Managing Director and CEO Ashish Chauhan noted that India has positioned itself as one of the most cost-effective and inclusive capital markets globally, particularly for small and medium enterprises (SMEs).
In an exclusive interview with ANI, Chauhan highlighted that the Indian market structure, supported by regulatory reforms and policy backing, enables companies of varying sizes to access public capital at relatively low costs compared to global peers. Contributing to India's competitiveness is the comparatively low cost of going public. Chauhan pointed out that in developed markets such as the United States, the total cost of listing can range between USD 20 million and USD 30 million. For smaller firms seeking to raise modest sums, for example, USD 1 million to USD 2 million, such high listing expenses make public fundraising economically unviable. In India, however, companies raising relatively small amounts are able to do so without disproportionate costs. The overall expense of listing is often estimated at 5 to 10 per cent of the capital raised for smaller issues. This makes public markets a feasible option even for early-stage or emerging businesses, broadening access to equity capital beyond large, established corporations. "(In India), people are raising USD 1-2 million also. So how much they are spending is probably 5 to 10 per cent of that money to list. "So, India is a very unique market which, through government policies and SEBI regulations, is promoting small companies also to list on the stock exchange," Chauhan told ANI. A key differentiator for India, he noted, is the operational success of its SME platform. While several international markets have experimented with dedicated platforms for smaller companies, not all have sustained momentum. London's Alternative Investment Market (AIM), he said, has struggled in recent years. Similarly, efforts in markets such as Japan have also faced challenges. In contrast, India's SME exchanges have gained traction, with a growing number of small companies tapping public markets for capital. "The Indian stock market is very, very inclusive, not only for the investors, but also for the companies, the small companies. If you have a dream, and many times I say that if you want to raise one crore, NSE will raise it for you. If you want to raise one lakh crore, NSE will also raise it for you. Of course, you have to raise, not us, but we provide the platform. You need to appoint the merchant bankers and lawyers, but broadly Indian markets are the only market in the world today which are well-functioning SME markets also," he said. The lower cost structure has been enabled in part by the development of a new generation of merchant bankers, legal advisors, and compliance professionals who specialise in SME listings. Chauhan emphasised that India's stock market ecosystem allows companies to raise amounts ranging from as little as Rs 1 crore to as much as Rs 1 lakh crore, depending on their scale and ambition. He said the exchange's job is to provide a platform, while merchant bankers, lawyers, and other intermediaries facilitate the listing process. The broader ecosystem, he suggested, has evolved to support enterprises across the spectrum, be it startups and SMEs or large conglomerates. Regulatory support from the Securities and Exchange Board of India (SEBI), along with enabling government policies, has played a significant role in shaping this environment. The framework is designed to reduce entry barriers while maintaining compliance and governance standards. India's capital markets have also benefited from strong retail participation and growing domestic institutional investment. A large and active investor base provides liquidity and confidence to smaller companies considering public listings. (ANI)
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