The Ministry of Defence (MoD) and the National Stock Exchange (NSE) signed an agreement on Monday to assist micro, small, and medium enterprises (MSMEs) (MSMEs) and emerging companies in the defence sector. The aim is to help these businesses expand their operations, explore new markets, and fund their research and development activities. The Memorandum of Understanding (MoU) has been signed to facilitate capital market access for MSMEs.
The MoD intends to help MSMEs in the defence sector raise productive capital for their growth plans efficiently and transparently through the NSE platform ‘NSE Emerge’. The platform offers new and viable options for raising equity capital from diversified investors. The MoU was signed by the additional secretary of the Department of Defence Production (DDP) and the managing director of NSE in the presence of Defence Secretary Giridhar Aramane, the MoD said in a statement.
“The MoU will be in force for a period of five years, during which DDP and NSE would conduct an extensive awareness drive through seminars, MSME camps, knowledge sessions, roadshows and workshops to guide corporate (firms) engaged with the Ministry of Defence for fundraising on ‘NSE Emerge’ platform,” it said.
The NSE will also help MSMEs connect with intermediaries such as merchant bankers, registrars, transfer agents, depositories, etc., and provide guidance on the capital markets, capital raising mechanisms, and regulatory compliance and requirements, the statement mentioned.
“This MoU will help MSMEs and emerging companies in the defence sector to scale up their business operations, explore new markets and fund their R&D activities,” it said.
Team BharatShakti
