The Minister for Financial Services & Regulation, Joe Hockey, has approved an application submitted under the Corporations Law by BSX Limited to operate as a stock exchange in Bendigo.
BSX Limited proposes to operate a stock exchange tailored to meet the needs of small capitalisation companies across a range of industry sectors in rural and regional areas.
"This is good news for small and medium enterprises as Bendigo Stock Exchange will enable these companies to list their securities and more easily raise capital," the Minister said.
"It is also good news for regional Australia because it creates a link between metropolitan Australia and rural Australia. It helps smaller businesses raise capital to develop new ideas and promote them.
"This is another step forward in the Government's determination to try and help businesses, particularly in rural and regional Australia, to raise money to expand their businesses, to create more jobs for people right across Australia."
BSX was supported by a $400,000 Commonwealth industry grant. This grant aimed to establish secondary stock exchanges and facilitate the development of capital markets in Australia.
The funding covered costs including the drafting of market rules, trade practices and intellectual property advice, and associated development costs. An additional $80,000 grant was provided in June this year to accelerate the development.
BSX's major shareholders include Bendigo Bank Group, ComputerShare Ltd and Small Cap Holdings Pty Ltd.