Kolkata: Securities and Exchange Board of India (SEBI) is planning an exclusive trading platform for the small and medium companies and has already formed an internal committee to implement it.

"We are planning to form a separate trading platform for the SMEs. We have already formed a small in-house committee to study and prepare roadmap for the same," SEBI chairman M Damodaran told sources during his recent visit to the city.

"The new trading platform for the small and medium companies was under strong consideration by the market regulator as the advantages offered by it will help formulation of a more efficient regulation," SEBI sources said.

Moreover, it will also help SMEs to shop in the overseas markets like Luxembourg and London's AIM market to raise their resources.

Merchant banking circle believe that SEBI will offer some relaxations in terms and disclosures to SMEs planning to hit the market in comparison to stringent regulations for stocks listed on the NSE and BSE.

"Unless, SEBI offers some advantages for smaller companies for listing on the new platform, it does not makes sense," a merchant banker said.

"Already, OTC exchange has failed and the BSE Indonext platform also failed to achieve desired result," he added.

In response to failure of OTC, Damodaran said the time was not correct for such market and now India is matured for such a concept.