Mumbai, BSE has signed a Memorandum of Understanding (MoU) with Department of Industries & Commerce, Government of Haryana to encourage and support MSME in raising capital. Devender Singh, IAS, Additional Chief Secretary, Industries, from Government of Haryana and Ajay Thakur, Head BSE SME and Startups from BSE have signed the MoU. Dr Yash Garg, IAS, Director – Industries and Commerce, Government of Haryana was also present on the occasion.
The Government of Haryana and BSE intend to facilitate SMEs in raising funds through BSE’s dedicated platform for SME’s -BSE SME- where small companies can list and raise productive capital, gain visibility and credibility vis-a vis large corporates.
Speaking on the collaboration Shri Ashishkumar Chauhan, MD & CEO, BSE, said, ‘The MSMEs in the state of Haryana play a vital role in the economic performance of the state. With more than 1,00,000 operational MSMEs, it is also one of the major employments providing sectors in the state.
One of the various challenges MSMEs face is limited access to finance which increase their dependence on debt capital resulting in distorted capital structures and stifled cash flows. Through this association, we aim to provide a conducive ecosystem for the SMEs to raise capital, grow and flourish.’
The SMEs in Haryana will get the following benefits by getting listed on BSE SME Platform: It will provide the SMEs with equity financing opportunities to grow their business – from expansion to acquisition Equity Financing lowers the debt burden leading to lower financing cost and healthier balance sheet Listing expands the investors base, which in turn helps in getting secondary equity financing, including private placement.
It enhances company’s visibility. Media coverage provides SMEs with greater profile and credibility leading to increase in the value of its shares.It will bring about greater incentive for employees as they can participate in the ownership of the company and benefit from being its shareholders Overall, the SME sector will grow better on two pillars of financial system i.e. banking and capital market
The Department of Industries and Commerce, Government of Haryana and BSE recognise the importance and role of the development of Micro Small And Medium Enterprises (MSME) sector in the state of Haryana and appreciate mutual cooperation for improving the financing opportunities for the MSME’s.