MSEI & SME Chamber ink pact to facilitate SME, startup listing

Mumbai, Aug 20 (KNN) The Metropolitan Stock Exchange of India (MSEI) has announced to provide a facility to help small and medium enterprises (SMEs) and startups to access the regulated financial markets.

The move has come up with the collaboration of SME Chamber and would allow SMEs to access asset classes like currency derivatives, interest rate derivatives and listing.

Under the this initiative, SME Chamber would provide industry inputs and insights, while MSEI would create a network of active venture capital and Private Equity funds under the Prime Minister's startup India initiative.

Speaking to the reporters on the sidelines of 'SME Exporters and Manufacturers Summit' MSEI MD and CEO Udai Kuma told "Our platform is designed to provide the right financial products for assistance to SMEs in raising capital, hedging business risk from volatile currency prices and against rising interest rates.”

"We see a huge opportunity in the vast network of VCs and PEs in India who can participate on a platform for providing much needed capital to the startup India initiative of the Government," he said, adding that MSEI cannot launch an SME platform like BSE and NSE as it does not have the requisite technical preparedness like its peers.

Addressing the summit, SEBI whole-time member Rajeev Kumar Agarwal said requirement of making disclosures makes SMEs hesitant to list on the capital markets.

"Disclosure is one requirement which makes the entrepreneurs hesitate in going for listing," he said, urging the SMEs to go for listing as it would benefit their future growth and provide them visibility.

He also said disclosure requirement for SMEs is less compared to that of other listed companies and there is more awareness on the issue among companies now. (KNN Bureau)