The National Stock Exchange announced a new agreement with the Ministry of Defence on Monday, to enhance capital market access for Micro, Small, and Medium Enterprises within the defence sector.
The Memorandum of Understanding is designed to help MSMEs in the defence sector raise capital for their growth plans efficiently and transparently via the NSE Emerge platform, which is tailored for small and medium enterprises on the National Stock Exchange.
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 effective for five years, during which the Department of Defence Production and the National Stock Exchange will carry out a comprehensive awareness campaign. This will include seminars, MSME camps, informational sessions, roadshows, and workshops to assist companies working with the Ministry of Defence in raising funds through the NSE Emerge platform.
NSE will also assist MSMEs in connecting with intermediaries like merchant bankers, registrars, transfer agents, depositories, etc., and guide them regarding capital markets, capital-raising mechanism and regulatory compliance and requirements.
The MoU was signed by the Additional Secretary, Department of Defence Production 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.
(With Inputs From PTI)
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