BSE, Haryana government sign pact to facilitate MSMEs raise capital

New Delhi: Leading stock exchange BSE on Thursday said it has inked a pact with Haryana government to encourage and support state's micro, small and medium enterprises (MSMEs) to raise capital.

"The Government of Haryana and BSE intend to facilitate SMEs in raising funds through BSE's dedicated platform for SME's -- BSE SME -- where small companies can list and raise productive capital, gain visibility and credibility vis-a-vis large corporates," the bourse said in a release.

By getting listed on the BSE's SME platform, the enterprises will get equity financing opportunities to grow their business from expansion to acquisition, it said.

Besides, listing expands the investor base, which in turn helps in getting secondary equity financing, including private placement, among others, the release added.

"With more than 1,00,000 operational MSMEs, it is also one of the major employment providing sectors in the state. One of the various challenges MSMEs face is limited access to finance which increase their dependence on debt capital resulting in distorted capital structures and stifled cash flows.

Through this association, we aim to provide a conducive ecosystem for the SMEs to raise capital, grow and flourish," BSE CEO and MD Ashish Kumar Chauhan said.