Media Release
BSE signs MoU with Department of Industries & Commerce, Government of Haryana
Joins hands to encourage and support SMEs in raising capital
Mumbai, July 18, 2019: BSE, India’s premier exchange and the world’s fastest Stock Exchange with a speed of 6 microseconds has signed a Memorandum of Understanding (MoU) with Department of Industries & Commerce, Government of Haryana to encourage and support MSME in raising capital. Shri. Devender Singh, IAS, Additional Chief Secretary, Industries, from Government of Haryana and Shri Ajay Thakur, Head BSE SME and Startups from BSE has 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 recognize 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.
About BSE
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full innovation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
Media Contact:
Yatin Padia / Rahul Vyas / Mihir Dani/ Shruti Nitesh
022 2272 8516 / 2272 8472 / 7738012080/ 8108000974
Yatin.padia@bseindia.com/Rahul.vyas@indiainx.com/mihir.dani@adfactorspr.com/ shruti.nitesh@adfactorspr.com