MoD, NSE sign agreement to help MSMEs, emerging firms in defence sector

The Defence Ministry and the National Stock Exchange on Monday signed an agreement that seeks to help Micro, Small and Medium Enterprises and emerging companies in the defence sector to scale up their business operations, explore new markets and fund their research and development activities.

The Memorandum of Understanding has been signed to facilitate capital market access to the MSMEs.

It intends to facilitate MSMEs in the defence sector to raise productive capital for their growth plan efficiently and transparently through the NSE platform 'NSE Emerge', the defence ministry said in a statement.

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

The MoU was signed by the additional secretary the Department of Defence Production (DDP) and managing director, NSE in the presence of Defence Secretary Giridhar Aramane.

"The MoU will be in force for a period of five years, during which, DDP and NSE would conduct an extensive awareness drive through seminars, MSME camps, knowledge sessions, roadshows and workshops to guide corporate (firms) engaged with the Ministry of Defence for fundraising on 'NSE Emerge' platform," it said.

The 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 statement said.

"This MoU 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," it said.