BSE signs pact with ESC to encourage listing of startups
Leading stock exchange BSE on Tuesday said it has joined hands with Electronics and Computer Software Export Promotion Council (ESC) to create awareness about the benefits of listing among small businesses and startups.
In this regard, BSE has signed a memorandum of understanding (MoU) with ESC, the exchange said in a statement.
Electronics and Computer Software Export Promotion Council (ESC) is an organisation sponsored by the Government of India with a mandate to promote the export of Information and Communications Technology (ICT) sector from the country and works as a bridge between the government and the industry on policy and promotional matters.
With a strong membership of over 2,300 ICT exporters covering the entire gamut of the electronics and IT industry in areas like consumer electronics, components, instrumentation, telecommunications, computer hardware as well as software and IT-enabled services.
Through this pact, ESC will utilise its pan India network of electronics and IT exporters, and evaluate the small and medium enterprises (SMEs) and startups for listing on the BSE SME and startup platform, ESC said in a statement.
Also, ESC will assist in sensitising its investor network for investing in SMEs listed on the BSE SME platform.
Besides, as a joint effort, the two organisations will collectively host joint roadshows and events across India to create awareness and promote the listing of SMEs and startups, the exchange said.
This MoU will help us in reaching out to ESC's pan India network of Electronics and IT exporters, and create greater awareness amongst the SMEs and startups about benefits of listing on the BSE SME and startup platform," Ajay Thakur, Head of BSE SME and startup, said.
Considering the economic impact of the COVID-19 pandemic, it will further encourage more and more SMEs and startups to list and raise equity capital on the exchange to expand and grow their business, he added.
Sandeep Narula, Chairman of ESC, said that SMEs, especially IT SMEs, are now exposed to greater opportunities than ever for expansion and diversification across the sectors. The Indian IT industry, despite initial hiccups, remained resilient during the current crisis and its response will go a long way in cementing stronger partnerships with global clients.
Despite its commendable contribution to the nation's economy, the SMEs sector does not get the required support and still faces a number of problems with inadequate credit, limited capital, and knowledge being on the top. Institutional linkages between the BSE and ESC will address this important issue, he added.
BSE launched its SME platform in March 2012 and so far, 337 companies listed on its SME platform. These firms collectively raised nearly Rs 3,500 crore from the market.
Out of these 337 companies, 99 have migrated to the BSE mainboard.