On Monday, the MoD and the National Stock Exchange (NSE) signed an agreement to assist Micro, Small, and Medium Enterprises (MSMEs) and emerging companies in the defense sector. This partnership aims to help these businesses grow, explore new markets, and fund their research and development (R&D) activities.
The Memorandum of Understanding (MoU) focuses on providing MSMEs in the defense sector with access to the capital market. Through the NSE platform ‘NSE Emerge’, these companies can raise productive capital for their growth plans in an efficient and transparent manner.
The MoU was signed by the additional secretary of the Department of Defence Production (DDP) and the managing director of NSE, in the presence of Defence Secretary Giridhar Aramane. It will be effective for five years. During this period, DDP and NSE will organize seminars, MSME camps, knowledge sessions, roadshows, and workshops to guide defense firms on raising funds via the ‘NSE Emerge’ platform.
The NSE will also help MSMEs connect with intermediaries like merchant bankers, registrars, transfer agents, and depositories, providing guidance on capital markets, fundraising mechanisms, and regulatory requirements. This agreement is expected to significantly aid MSMEs and emerging companies in the defense sector in scaling up their operations, exploring new markets, and funding their R&D efforts.
