Inks pact with BSE, NSE to help MSMEs expand fund base

The West Bengal government has signed pacts with BSE and NSE to raise awareness among the State’s MSMEs to tap the capital market as an alternate funding source.

The State has the highest number of micro, small and medium enterprises — 52.7 lakh in 2016-17, employing about 1.1 crore people, according to official statistics.

SME listing provides higher visibility at national level and this initiative is part of the government’s plans to expand their funds base. Bank credit to MSMEs in last seven years is estimated at ₹1.74 crore, according to the MSME and Textiles Department of West Bengal Government.

100 SMEs to be listed

To start with, the State government, is planning to get 100 SMEs listed on NSE Emerge platform by 2020. Through the pact, BSE will encourage them to tap domestic capital markets as an option for accessing capital for expansion while gaining national-level visibility. BSE will provide intellectual and manpower support in such awareness programmes. About 18 companies from West Bengal are already listed on the BSE SME platform.

Ajay Thakur, head of the BSE SME platform, said that it was a myth that only large companies could be listed. West Bengal, being the largest hub of SMEs, would benefit immensely because of this MoU. Currently, six companies from varied industries in the State are listed on the NSE Emerge platform with total fund raising of about ₹44 crore.