India's leading stock exchange, Bombay Stock Exchange has started proceeding towards launch of a new stock exchange for small and medium enterprise stocks. According to a senior BSE official, this SME exchange is likely to be launched in late 2011.

Madhu Kannan said on the sidelines of an event that exchange has already applied for the license, and is seeking an approval from Security and Exchange Board of India (SEBI). Kannan also said that this approval will arrive shortly. He said about plans of launching exchange in the second half of this year after getting all approvals.

Madhu Kannan is chief executive and managing director of BSE. This SME Exchange is BSE's plan of rolling out a platform exclusively for SMEs to raise money.

Others who have already applied for an SME Exchange include National Stock Exchange and MCX-SX. Both these exchanges applied in SEBI in last June. Kannan also said that they have asked brokers for feedback for launching such a exchange.

Last year SEBI ruled the possibility for SME's to raise money from SME exchange. He said "We are ready with the entire necessary infrastructure to launch the exchange. We are also in talks with some merchant bankers and brokers for their feedback."