Evaluating SMEs Exchange as an Emerging Platform in India

Abstract

Stock exchanges are the cornerstones of every nation’s growth, and capital markets are the nation’s foundation too. Hence, the growth of the Stock Markets of the world is directly related to the production of the economy of every country. It can be noted from the last few years that the stock markets have expanded to suit the unmet needs. Stock market improvement has been created, and different products have been produced to meet the requirements. Commodities and the financial markets are the correct examples. The goal of this paper is to assess that the SME exchange provides companies with a new forum from which they can transfer to the exchange’s main board. Till 2022, 107 companies have been transferred from NSE Emerge to the NSE mainboard market. The research hypothesis of the paper is to measure the performance of the companies that migrated from the SME’s exchange to the main board of the NSE market. Using the independent sample t check with SPSS tools, we took a survey of 107 companies from the NSE Emerge that is being evaluated for their success before and after migration. This study’s added value is to measure that whether the migration is a mean of increasing the profitability of the migrated company or not. We used the statistical tool independent sample t test on pre- and post-migration return differences. Our analysis reveals that when a corporation opts for a main board (NSE) listing, its shares often generate a favourable anomalous return although it was not found significant for post-migration return capabilities.

Keywords: Stock Market, SME Exchange, Economy, Financial Market, NSE

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