Ministry of Defence and NSE Collaborate to Empower Defence MSMEs

The Ministry of Defence and the National Stock Exchange (NSE) have joined forces to create a robust ecosystem for Micro, Small, and Medium Enterprises (MSMEs) in the defence sector. A Memorandum of Understanding (MoU) signed on July 29, 2024, aims to facilitate seamless access to capital markets for these enterprises through the NSE Emerge platform.

This strategic partnership seeks to empower defence MSMEs by providing them with a platform to raise equity capital efficiently and transparently. By leveraging the NSE Emerge platform, these enterprises can tap into a diverse pool of investors, unlocking new avenues for growth and expansion.

The MoU outlines a comprehensive plan for supporting defence MSMEs. Both the Ministry of Defence and NSE will collaborate on extensive awareness campaigns, including seminars, workshops, and roadshows, to educate MSMEs about the benefits of capital market access. Additionally, NSE will provide guidance on regulatory compliance, capital raising mechanisms, and connecting with intermediaries such as merchant bankers and registrars.

This initiative is expected to catalyse growth in the defence sector by enabling MSMEs to access the necessary capital for research and development, technology upgradation, and market expansion. By fostering a conducive environment for capital formation, the government aims to strengthen the defence industrial base and enhance India’s self-reliance in defence manufacturing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.