SIDBI will jointly work with the NSE to explore the feasibility of a debt platform that meets the unmet needs of this sector.
3rd March, 2021:The National Stock Exchange (NSE) on Tuesday said it has entered into a pact with Small Industries Development Bank of India (SIDBI) to explore the feasibility of a debt capital platform for the MSMEs.
The entities signed a memorandum of understanding (MoU) for co-operation in various ongoing micro, small and medium enterprises (MSMEs)-related initiatives of the two institutions, the NSE said in a statement.
SIDBI Deputy Managing Director V Satya Venkata Rao said, “Keeping in view the large and diversified MSME sector in the country, there is a continuous need for various institutions to co-ordinate and co-operate with each other for the benefit of MSME sector.”
According to him, both the institutions run several programmes for MSMEs, and the co-operation will help increase the impact and reach of these programmes.
He further said that an expert committee on MSMEs, headed by former Securities and Exchange Board of India Chairman, UK Sinha, has made several recommendations for the MSME sector.
It includes the need to develop additional instruments for debt and equity, which will help crystallise new sources of funding for MSMEs.
In this regard, SIDBI will look forward to jointly work with the NSE to explore feasibility of a debt platform for the unmet needs of the sector.
NSE Managing Director and CEO Vikram Limaye said the exchange is looking forward to working with SIDBI for exploring feasibility of a debt capital platform for MSMEs and based on the market feedback, the bourse will plan the next steps ahead.
In December last year, SIDBI also launched a web portal to help MSMEs take benefit of the Reserve Bank of India’s one-time debt restructuring. This portal will help MSMEs prepare restructuring proposals by keying in only the most essential data of their past financials, future projections, and restructuring requirement.
(PTI)
Source: Business World
