SME Exchange: Direct listing of startups without the need for IPOs as a separate SME segment

The launch of the SME Exchange last year was a milestone for accessing Equity capital by the MSMEs.

However, procedural and cost implications for listing in the current framework may not be suitable for a large number of SMEs although, they might otherwise benefit from better access to potential investors which can be gained through listing.

In this regard, a dual approach may be taken to enable easier fund raising by startups and SMEs.

i. Enable direct listing of startups without the need for IPOs as a separate SME segment. (This has also been one of the key announcements by the Hon’ble Finance Minister in the Union Budget 2013-14.)

ii. The present SME segment may be suitably modified to enable more eficient fund raising.

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NFAP Study on proposed Immigration Reform Bill

The National Foundation for American Policy (NFAP) recently released a new policy brief, ‘Senate Bill’s H-1B and L1 Visa Provisions are Reversal of Fortune for American Competitiveness’. The document can be downloaded here: http://www.nfap.com/pdf/NFAP%20Policy%20Brief%20H-1B%20and%20L-1%20Provisions%20in%20Senate%20Bill%20April%202013.pdf

In particular, the study highlights some of the components of the proposed Senate ‘Gang of Eight’ immigration reform bill which would impede American competitiveness in the long run and be detrimental to economic growth. In particular, the study focuses on:

1) New recruitment and non-displacement attestations

2) Hindering companies’ ability to deploy requisite high skill talent at client locations

3) Giving the Department of Labor unlimited investigative authority

4) Requiring much higher wage limits for foreigners, as against Americans

In addition, the study points out that some of the provisions may even place the US in violation of its commitments under the General Agreement on Trade in Services (GATS).

The NFAP is one of the few American organizations that has rallied behind the cause of free movement of skilled labor for many years now. Indian companies in the US could use much more of such support—given that the study is by a US organization, hopefully it will be considered by US lawmakers!

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