NSE inks pact with Defence Ministry to boost capital market access for MSMEs

The National Stock Exchange (NSE) on Monday said that it has signed a memorandum of understanding (MoU) with the Ministry of Defence to enhance capital market access for Micro, Small & Medium Enterprises (MSMEs) in the defence sector. 

This pact aims to enable MSMEs to efficiently and transparently raise productive capital for their growth plans through the NSE Emerge platform.

The MoU, which will be in effect for five years, outlines a collaborative effort between the Department of Defence Production (DDP) and NSE to conduct extensive awareness campaigns. These will include seminars, MSME camps, knowledge sessions, road shows, and workshops, designed to guide defence sector corporates in fundraising on the NSE Emerge platform.

Additionally, NSE will assist MSMEs in connecting with intermediaries such as merchant bankers, registrars, transfer agents, and depositories. The exchange will provide guidance on capital markets, capital raising mechanisms, and regulatory compliance requirements.

The MoU was signed by the Additional Secretary of the Department of Defence Production and the Managing Director of NSE, in the presence of Defence Secretary Giridhar Aramane. This partnership is expected to help MSMEs and emerging companies in the defence sector scale up their operations, explore new markets, and fund their R&D activities.

The Defence Ministry and the National Stock Exchange (NSE) have also signed an agreement aimed at supporting Micro, Small, and Medium Enterprises (MSMEs) and emerging companies in the defence sector. This initiative seeks to help these businesses scale up operations, explore new markets, and fund their research and development activities.

The Memorandum of Understanding (MoU) is designed to provide MSMEs with access to capital markets. Through the NSE Emerge platform, the MoU aims to facilitate efficient and transparent capital raising for the growth plans of MSMEs in the defence sector, according to a statement from the Defence Ministry.