India’s largest stock exchange National Stock Exchange (NSE) and Small Industries Development Bank (SIDBI) are exploring to create a debt capital platform for MSMEs.
NSE and SIDBI have signed a memorandum of understanding (MoU) for co-operation on various initiatives being take for the MSME sector in both the organisation.
SIDBI’s Deputy Managing Director V Satya Venkata Rao said, “Keeping in view the large and diversified MSME sector in the country, there is a continuous need for various institutions to co-ordinate and co-operate with each other for the benefit of MSME sector.”
Rao believes both the institutions are running several programmes for MSMEs and the co-operation will help increase the impact and reach of these programmes. An expert committee on MSMEs headed by former SEBI Chairman, UK Sinha has made several recommendations for the MSME sector.
The recommendations talk about the need to develop additional instruments for debt and equity to help crystallise new sources of funding for MSMEs. SIDBI will jointly work with NSE to explore the feasibility of a debt platform for the unmet needs of the sector.
NSE’s MD & CEO, Vikram Limaye said, “The exchange is looking forward to working with SIDBI for exploring feasibility of a debt capital platform for MSMEs and based on the market feedback, the bourse will plan the next steps ahead In December last year, SIDBI also launched a web portal to help MSMEs take benefit of the Reserve Bank of India’s one-time debt restructuring.”
The portal which is being explored will help MSMEs prepare restructuring proposals by adding the essential data of their past financials, future projections and restructuring requirement.
 and National Stock Exchange have tied-up to explore a platform for debt capital for MSMEs.){kind=link}