NSE signs pact with Defence Ministry to facilitate capital market access to MSMEs

New Delhi: The National Stock Exchange (NSE) on Monday said it has inked a pact with the Ministry of Defence to facilitate capital market access to the MSMEs (Micro, Small & Medium Enterprises) in the defence sector.

The memorandum of understanding (MoU) aims to facilitate MSMEs in the defence sector to raise productive capital for their growth plan efficiently and transparently through the NSE platform for SME -- NSE Emerge.

The platform offers new and viable options for raising equity capital from a diversified set of investors, the exchange said in a statement.

The MoU will be in force for five years, during which DDP and NSE will conduct an extensive awareness drive through seminars, MSME camps, knowledge sessions, road shows and workshops to guide corporates engaged with the Ministry of Defence for fundraising on NSE Emerge platform.

NSE will also assist MSMEs in connecting with intermediaries like merchant bankers, registrars, transfer agents, depositories etc and guide them regarding the capital markets, capital raising mechanism and regulatory compliance and requirements.

The MoU was signed by the Additional Secretary, Department of Defence Production (DDP) and Managing Director, NSE in the presence of Defence Secretary Giridhar Aramane.

This pact 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.