Market regulator Sebi today said that it is looking into the idea of setting up of SME Exchanges even though no bourses have formally approached it.

"We are very keen on that (SME Exchanges)...We have initiated the process.. finally it is in the hands of the exchanges to decide whether they want to create a separate platform for SMEs," Sebi Chairman, C B Bhave , told reporters on a sidelines of a function here.

On January 5, BSE Chief Executive Officer, Madhu Kannan, had said that the country's premier bourse would announce the launch of its SME Exchange within a fortnight.

"We have made a number of presentations to the regulator and a few more are awaited. Within the next couple of weeks will be have a clearer picture on this and then we will be able to announce the roll out date," Kannan had said.

The BSE, along with NSE and privately-promoted MCX SX are keen on setting up SME Exchanges since Sebi floated the idea in June last year.

However, none of these exchanges have applied formally for a licence with the Sebi.

The government and capital markets watchdog mooted the idea of a separate exchange for small and medium enterprises last year, as the existing exchanges are too costly for them.

Proposed SME bourses will allow small companies to get listed at a lower cost and raise smaller amount of money from the primary markets, which will force these companies to adopt better corporate governance practises and in turn will get cheaper funds from capital market as well as from banks.