Estimation of Impact Cost – A Study of NSE Emerge Platform

The trading activity and liquidity are important factors to achieve success of SMEs. VCs, Institutional Investors and high net worth investors’ participation will help in progress of exchanges. The retail participation is also play an important role in creation of liquidity in the market. The paper attempts understand the present liquidity position in the NSE merge platform and whether the impact cost is more when compared with NE main boards. Illiquid companies and platform will make the investors to lose the confidence. The study revealed that all the companies won’t trade on regular basis. Investors’ sentiments get affected due to this as they will not be able to sell or buy stocks immediately. The Average Impact Cost of NSE Emerge is 16.45%, which is very high and found to be highly illiquid platform.