SEBI has now permitted Stock Exchanges to set up separate platforms for trading activities of SMEs (Small and Medium Enterprises). Also, SEBI has come out with guidelines pertaining to SMEs. Introducing a change in the system, SEBI has now permitted the pure auction method of book building. In such systems a bid can be made at any price above the floor price instead of restricting the bid to the price band as was done earlier. Allotment would begin with the highest bidder and go in such order.

Companies could choose either the auction or the book building method. Also, the auction method can only be adopted in respect of Qualified Institutional Buyers (QIBs). The maximum capital permitted to be raised on the separate platforms would be Rs.25 crores. On crossing the limit, trading would be on the main platform.

SEBI has mandated half-yearly disclosure of balance sheet keeping in mind the international practice.