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BSE expects to list 100 companies on its SME platform

Disclosure:I am market making in the shares of BSE

Leading stock exchange BSE is hopeful of listing a total of 100 companies on its SME platform by December-end after launching the segment for small enterprises more than two years ago.

Currently, 66 companies are listed on BSE’s SME platform having an aggregate market capitalisation of nearly Rs 7,900 crore. These firms raised about Rs 550 crore through initial public offerings (IPOs).

“Basically we’ve got a very good response on SME as in 2 years time we’ve now got 66 companies listed and in next two months 20-25 more companies will get listed so effectively we’ll have 100 companies listed by this year end on the BSE SME platform itself,” BSE managing director and CEO Ashish Kumar Chauhan said at the sidelines of an Assocham event.

Many good companies from areas like manufacturing, metals, information technology and others are coming to list on the BSE’s SME platform, he said.

In March 2012, BSE launched platforms for small and medium enterprises aimed at entities looking to raise equity capital after market regulator Sebi allowed such firms to get listed without an IPO.

It launched an institutional trading platform for this in November 2013. The NSE followed suit in September in the same year when its platform ‘Emerge’ went live.

According to the SME listing norms, a company would be eligible for listing if it has not completed 10 years after incorporation, and its revenue has not exceeded Rs 100 crore in any of the financial years.-from TOI

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Rich Indians love India

The survey of more than 2,000 individuals around the world, all with personal wealth over $1.5 million, showed Chinese are more eager to emigrate than the very well-off in any other region.

Forty-seven percent of rich Chinese planned to move abroad in the next half-decade. That compared with 23 percent in Singapore and 16 percent in Hong Kong. One-fifth of rich Brits intended to emigrate, while only 6 percent of Americans and 5 percent of Indians had that plan, reported the South China Morning Post today, citing the report.

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The state of Silicon Valley today

Hat Tip Rohit

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Basant Maheshwari on Value

Now, a great management in a great business creates tremendous value. Like Narayana Murthy with Infosys.

A great management in a bad business will lose value. Like Tata Sons with Tata Steel.

A bad management in a great business will lock value. Take, for instance, Vijay Mallya with United Spirits.

A bad management in a bad business will always blow up value. Like Vijay Mallya with Kingfisher Airlines.-said Basant Maheshwari

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Munger:Ben Graham had a lot to learn as an investor

I don’t love Ben Graham and his ideas the way Warren does. You have to understand, to Warren — who discovered him at such a young age and then went to work for him — Ben Graham’s insights changed his whole life, and he spent much of his early years worshiping the master at close range.  But I have to say, Ben Graham had a lot to learn as an investor.  His ideas of how to value companies were all shaped by how the Great Crash and the Depression almost destroyed him, and he was always a little afraid of what the market can do. It left him with an aftermath of fear for the rest of his life, and all his methods were designed to keep that at bay.

I think Ben Graham wasn’t nearly as good an investor as Warren Buffett is or even as good as I am.  Buying those cheap, cigar-butt stocks [companies with limited potential growth selling at a fraction of what they would be worth in a takeover or liquidation] was a snare and a delusion, and it would never work with the kinds of sums of money we have. You can’t do it with billions of dollars or even many millions of dollars.  But he was a very good writer and a very good teacher and a brilliant man, one of the only intellectuals – probably the only intellectual — in the investing business at the time.- said Charlie Munger