LEADING stock exchange the Bombay Stock Exchange (BSE) on Friday launched institutional trading platform to enable the listing of start-ups and SMEs without their having to sell shares through initial public offer (IPO).

In his annual Budget speech earlier this year, finance minister P Chidambaram had announced that startups and small and medium enterprises (SMEs) can get listed on the bourses without bringing IPO.

Consequently, capital markets regulator Sebi decided to permit the listing without IPO and trading of specified securities of SMEs, including start-up companies, on institutional trading platform (ITP) on the exchanges.

Sebi notified new provisions and issued a detailed circular to facilitate such listings last month.

"In view of this, we announce the launch of the institutional trading platform on Friday, that is on November 28, for accepting the information memorandum from the companies for listing on institutional trading platform," BSE said in a circular.

ITP will help SMEs and start-ups raise capital from the securities market during their early stages of growth, as lack of exit opportunities for investors in case of unlisted companies come as a major hindrance for small companies to get capital.

A company would be eligible for such a listing if it has not completed 10 years after incorporation, and its revenues have not exceeded Rs 100 crore in any of the financial years.