MoD and NSE Sign MoU to Boost Capital Market Access for MSMEs in Defence Sector

The MoU was signed by the Additional Secretary of the Department of Defence Production (DDP) and the Managing Director of NSE, in the presence of Defence Secretary Shri Giridhar Aramane.

On July 29, 2024, the Ministry of Defence and the National Stock Exchange of India Limited (NSE) entered into a Memorandum of Understanding (MoU) aimed at enhancing capital market access for Micro, Small, and Medium Enterprises (MSMEs) in the defence sector. The MoU was signed by the Additional Secretary of the Department of Defence Production (DDP) and the Managing Director of NSE, in the presence of Defence Secretary Shri Giridhar Aramane.

This agreement will enable MSMEs in the defence sector to efficiently and transparently raise capital for their growth plans through the NSE Emerge platform. NSE Emerge is designed to provide a range of equity capital options from a diverse pool of investors.

Under the MoU, which will be effective for five years, DDP and NSE will conduct a comprehensive awareness campaign. This will include seminars, MSME camps, knowledge sessions, road shows, and workshops aimed at educating defence sector corporates about fundraising opportunities on the NSE Emerge platform. Additionally, NSE will support MSMEs by facilitating connections with intermediaries such as merchant bankers, registrars, transfer agents, and depositories, and by providing guidance on capital markets, capital raising mechanisms, and regulatory compliance.

The partnership is set to help MSMEs and emerging companies in the defence sector expand their business operations, explore new market opportunities, and fund research and development activities.