Telangana State, BSE in pact to support MSMEs raise equity funds
Telangana govt, BSE, GlobalLinker sign an agreement in this regard
Hyderabad: The Telangana government joined hands with stock exchange BSE to help micro, small and medium enterprises (MSMEs) in the State raise equity funds.
The BSE and Telangana's Industries Department, along with GlobalLinker, signed a memorandum of understanding in this regard.
The partnership with the BSE would help in addressing a vital challenge of access to finance and increasing credibility of the MSMEs. As part of the association, the BSE will provide intellectual and manpower support to create awareness about the importance and benefits of listing.
The exchange said lack of awareness around this subject has led to a lot of pre-conceived notions that listing involves increased compliance levels, increased costs and more.
"We are pleased to partner with the BSE, as this engagement will provide the necessary hand-holding support and guidance to the MSMEs of the State," said Telangana Principal Secretary Jayesh Ranjan. He added that currently, there are few MSMEs registered on the stock exchange from Telangana and we would like to see these numbers grow soon.
BSE MD and CEO Ashishkumar Chauhan said MSMEs play a vital role in the economic development of in Telangana. They are also one of the major contributors for employment.
According to him, one of the various challenges the MSMEs face is the limited access to alternative source of finance which increase their dependence on debt capital resulting in distorted capital structures and stifled cash flows.