"The objective is to get wider participation of well-informed investors in SMEs, through such listing, and to enable easy exits for early-stage investors," he said.
Sebi is also planning to make it easier for issuers and other participants such as investment bankers to boost SME listings.
Since the inception of the SME platform about a year ago, nearly two dozen SMEs have been listed on BSE and the National Stock Exchange (NSE).
Sebi is considering relaxations to the obligatory underwriting and market-making for merchant bankers, along with lower dilution requirement for promoters. According to current norms, an issuer has to dilute at least 25 per cent equity through SME IPOs.
For SME IPOs, investment bankers are responsible for market-making for at least three years and the IPO has to be fully underwritten.
Members on the SME expert panel include NSE vice-president Hari K, BSE-SME Exchange's Ajay Thakur, Deloitte senior director Avinash Gupta, V K Agarwal from the Federation of Indian Micro, Small & Medium Enterprises and Indian Venture Capital and Private Equity Association president Mahendra Swarup.
The panel's first meeting was held at the Sebi office on April 9.SMALL BEGINNINGS
- Sebi sets up expert panel for SME listing
- Panel to form guidelines for listing of SME companies without fund raising
- Move follows Budget proposal
- Norms could be simpler as no fund raising involved
- Panel to also review existing SME rules to boost listing
- Obligation of market making, underwriting on i-bankers could be relaxed