New Delhi: On July 29, 2024, the Ministry of Defence and the National Stock Exchange of India Limited (NSE) signed a Memorandum of Understanding (MoU) to provide capital market access to Micro, Small, and Medium Enterprises (MSMEs) in the defence sector. The MoU was signed by the Additional Secretary, Department of Defence Production (DDP), and the Managing Director of NSE in the presence of Defence Secretary Giridhar Aramane.
The MoU aims to facilitate MSMEs in the defence sector to raise productive capital for their growth plans in an efficient and transparent manner through the NSE platform ‘NSE Emerge’. This platform offers new and viable options for raising equity capital from a diversified set of investors.
Spanning a period of five years, the agreement will see DDP and NSE conducting extensive awareness drives through seminars, MSME camps, knowledge sessions, roadshows, and workshops. These initiatives aim to guide corporates engaged with the Ministry of Defence on fundraising through the NSE Emerge platform. Additionally, NSE will assist MSMEs in connecting with intermediaries such as merchant bankers, registrars, transfer agents, and depositories, providing guidance on capital markets, capital raising mechanisms, and regulatory compliance requirements.
“The MoU will significantly help MSMEs and emerging companies in the defence sector to scale up their business operations, explore new markets, and fund their R&D activities,” stated a senior official from the Ministry of Defence.
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