BSE and AIMA MSME sign MoU to promote listing of MSMEs
signed a Memorandum of Understanding (MoU) with the All India MSME Association (AIMA MSME) in order to promote the listing of micro, small and medium enterprises (MSMEs) and startups across India.
This initiative will enable MSMEs that are a part of AIMA to help BSE to identify and evaluate the small businesses that can be listed on the BSE SME platform along with encouraging the investor network to invest in the listed SMEs.
Additionally, AIMA SME and BSE will jointly host roadshows and events across the country in order to spread awareness regarding the listing of MSMEs on BSE's platform for this sector.
Commenting on this development, Ajay Thakur, Head of BSE SME and Startups, "We are currently observing a surge of MSMEs and startups in the country and funding is one of the most vital elements. So, it is very important that we make them aware of the benefits of equity funding route and this association is key for us to be able to do so and also attract more investors to invest in the listed MSMEs and startups."
Avinash Dalal, President of AIMA MSME, said that this partnership will help in contributing to the long-term goal of becoming a $5 trillion economy by 2025.
They form the backbone of the Indian economy, contributing about 30 percent to the GDP and having the second-largest workforce after agriculture. According to research firm IBEF, India is home to about 6.3 crores micro, small and medium enterprises (MSMEs).
In March 2012 and December 2018, BSE had launched SME and startup platforms respectively to encourage companies falling in these categories to get listed. Today, 350 SMEs are listed on the platform, which commands a market share of 61 percent.
The platform, which was launched to encourage equity culture within the SME sector, according to Ajay, has also helped in doing away with a lot of preconceived notions among small businesses, including the assumption that listing involves increased compliance levels and increased costs.