In a bid to help Micro, Small and Medium Enterprises (MSMEs) in raising equity funds, the Telangana government along with GlobalLinker has signed a Memorandum of Understanding (MoU) with Bombay Stock Exchange (BSE).
BSE will provide intellectual and manpower support to create awareness about the importance and benefits of listing on stock exchanges.
Commenting on the same, Jayesh Ranjan, Principal Secretary, Industries and IT Department, Government of Telangana, said, "The State has taken various initiatives to provide the required support for MSMEs to expand their operations and become inspiring examples for others to follow. Currently there are very few MSMEs registered on the stock exchange from Telangana and we would like to see these numbers grow soon".
Last year the Industries & Commerce Department had introduced the Telangana State GlobalLinker portal for MSMEs to go digital and seek support in growing their business. The state government currently offers a free e-commerce store with payment gateway and logistics capabilities, buyers-sellers connect, support for exports, etc. on the portal.
"The MSMEs in the state of Telangana play a vital role in the economic development of the state. They are also one of the major contributors for employment. One of the various challenges MSMEs face is the limited access to alternative sources of finance which increase their dependence on debt capital resulting in distorted capital structures and stifled cash flows", said Ashishkumar Chauhan, MD & CEO, BSE.
"Through this association, MSMEs of the state can access equity financing opportunities to grow their business from expansion to acquisition", he added.
Reportedly, as per the MoU, the stock exchange will provide intellectual & manpower support to create awareness about the importance and benefits of listing. Lack of awareness around this subject has led to a lot of preconceived notions that listing involves increased compliance levels, increased costs and more.
"GlobalLinker has partnered with the Telangana State Government to digitize SMEs in Telangana. A key to SME growth is access to capital. The arrangement with BSE SME will help Telangana State GlobalLinker members plan their capital raise and better prepare them for improved management of their businesses in time to come", said Sameer Vakil, co-founder & CEO, GlobalLinker.