Migration of SMEs in the Bombay Stock Exchange: A different look at the SME financing issues

We examine the impact of the creation of a new platform aimed at enabling small and medium enterprises (SMEs) to raise equity nance in the Indian capital markets. The empirical results suggest that a firm’s performance does not improve significantly after it migrates to the Bombay Stock Exchange (BSE) mainboard. This implies that the firms have already absorbed the benefits of public listing when they first listed on the SME board, and the subsequent migration to the BSE mainboard does not bring any additional benefit in terms of a higher stock return and a lower stock return volatility. Consequently, we conclude that the new platform was successful in improving access to capital for SMEs