ABSTRACT
Contributing nearly 30% to India's GDP and generating employment for over 10 million individuals, the sector of Small and Medium Enterprises (SMEs) constitutes a critical pillar of the national economy. Despite this contribution, SMEs face persistent challenges in raising capital due to limited and inconsistent disclosure practices. To address this gap, dedicated SME exchanges were introduced; however, limited transparency continues to restrict financial access, particularly on platforms such as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This study introduces a comprehensive SME Disclosure Index (SDI) for Indian SMEs, covering four dimensions: Financial, Non-Financial, Sustainability & ESG, and Voluntary Disclosures. Using content analysis of annual reports from the top 30 SMEs listed on the BSE Emerge platform, the study finds significant company-wise variation across disclosure dimensions. While financial disclosure dominates due to regulatory requirements, non-financial, sustainability and ESG, and voluntary disclosures remain limited but show signs of growth. The proposed SDI provides a structured framework to benchmark SME disclosures, offering practical implications for regulators, investors, and SME promoters to enhance accountability and foster integration into capital markets.
