The road ahead

This, however, would not be the first attempt in India for such an exchange. The over-the-counter Exchange of India (OTCEI) in the mid 90s was a similar initiative, which later suffered from the lack of investor interest. The lessons learned from that experience need to be remembered in order to ensure the success of these new exchanges. Also a new round of discussion is needed after a year of the operations to assess the progress and implement any additional features if need be.

Only time will tell the success of this initiative and the impact it can have, meanwhile the biotech industry has welcomed it. It has definitely set the ball in motion for medium sized companies to access public funds for their growth. Though, surely not a sure shot solution for all problems related to capital, the exchanges do present a promising opportunity to the companies in an environment starved of venture capitalists willing to invest in early and mid stage firms in life sciences industry.