It took almost a decade since the SME Exchange has been formalised to see 60 floats in a month. Still the total number of listings on the SME bourses is not something that the growing Indian economy can be proud of.

In India, most SMEs operate in debt markets. Cost of raising debt for SMEs is increasingly becoming problematic both from the points of adequacy and timeliness and most often banks remove the umbrella in times of either too hot Sun or heavy downpour. But in a digital world simplifying businesses in the small sector also demands investments where the returns come gradually and not at the pace at which a financial institution extending credit demands. It is therefore necessary for the firms in the sector to look for enhancing equity.