- Govt of Gujarat to create a fund on the NSE platform encouraging investors to invest in the fast-growing SME’s
- 64 companies have been listed on NSE Emerge from Gujarat and have raised over 900 crores
- Govt of Gujarat and NSE will also work jointly to promote the online digital bills receivable discounting platform (RXIL)
Ahmedabad, December, 2019: National Stock Exchange of India Ltd (NSE) and Government of Gujarat have entered into Memorandum of Understanding (MOU) to work jointly for the promotion and development of MSMEs in the state of Gujarat. The MOU will address multiple avenues for MSME’s in terms of Fund Raising and understanding of hedging foreign exchange fluctuations for MSMEs engaged in Imports & Exports.
Speaking on this occasion, Shri Vijay Rupani, Honorable Chief Minister of Gujarat said, “The joint initiative between Gujarat Government and National Stock Exchange will bring growth and development for MSMEs in the state. Gujarat Government and NSE, together are working towards making this funding available for MSMEs in Gujarat.”
Shri Vikram Limaye, MD & CEO, NSE said, “Gujarat has strong and robust business ecosystem comprising of industrial clusters of Jamnagar, Baroda, Morbi, Bhavnagar and Rajkot. The MOU between the Government and NSE is to support the efforts of the Government of Gujarat to facilitate the SME’s in enhancing their financing opportunities and help them catapult to the next level of growth.”
The MOU was signed in the presence of Honorable Chief Minister of Gujarat, Shri Vijay Rupani and other official of Ministry of MSME along with senior NSE officials.
As part of the understanding, NSE will support the efforts of the Government of Gujarat in enhancing the financing opportunities for MSME’s in the State, through listing on NSE’s dynamic and thriving fund raising SME exchange platform, NSE Emerge.NSE will also handhold SME’s through the process of listing, thereby empowering MSME’s to achieve their next level of growth.
The Government has decided to support the MSME’s financially by bearing a part of the expenses related to listing. As listing helps companies to get better access to capital for their expansion and growth, provides visibility to local companies at the national level giving them high credibility and unlocking valuation.
Government of Gujarat and NSE will also work jointly to promote the online digital bills receivable discounting platform (RXIL). The bills receivable of MSME’s can be discounted through transparent auction mechanism on best competitive rates. This platform will facilitate MSMEs to have hassle free access to finance and prompt realization of their receivables.
A fund is also being created by the Government of Gujarat, to encourage investors to invest in the fast-growing SME’s in the State, on the exchange platform. Government of Gujarat and NSE have also planned extensive awareness creation drives for exporters and importers to facilitate them to understand the importance of hedging of Forex Exposure from currency risk.
NSE SME platform EMERGE has currently 205 companies listed on its platform, helping them to raise capital to the tune of INR 3,192 crores. The total market capitalization of these companies is more than INR 12,000 crores.Similar intent and policies have been introduced by the states like Uttar Pradesh, Rajasthan, Maharashtra, Punjab, Haryana, Uttarakhand and West Bengal.
Receivables Exchange of India Limited (RXIL), jointly promoted by NSE and SIDBI is also supporting MSMEs through the TReDS Platform. RXIL, operates India’s first TReDS Platform. RXIL integrates MSMEs with their Buyers (PSUs / Govt. Departments (Central & State) / Corporates) and multiple financiers on the same platform and provides cost efficient and timely financing for its MSMEs and SMEs.
About National Stock Exchange of India Limited (NSE):
National Stock Exchange of India Ltd. (NSE) is the leading stock exchange in India and the second largest in the world by nos. of trades in equity shares from January to December 2018, according to World Federation of Exchanges (WFE) report. NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. NSE has a fully-integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading and clearing members with the rules and regulations of the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. NSE believes that the scale and breadth of its products and services, sustained leadership positions across multiple asset classes in India and globally enable it to be highly reactive to market demands and changes and deliver innovation in both trading and non-trading businesses to provide high-quality data and services to market participants and clients.