BSE Signs MoU with ESC to Promote Startups & SMEs to List

BSE has joined hands by way of an MoU with Electronics and Computer Software Export Promotion Council (ESC) to create awareness about the benefits of listing among small businesses and startups.

ESC is a government sponsored organization that works towards promoting the export of Information and Communications Technology (ICT) sector from the country. The organization works as a bridge between the government and the industry on policy and promotional matters.

Through this agreement, ESC will leverage its pan India network of electronics and IT exporters and evaluate SMEs and startups for listing on the BSE SME and startup platform, said a statement.

ESC will also assist in sensitizing its investor network to invest in SMEs listed on the BSE SME platform.

In a joint effort, the two organizations will collectively host joint roadshows and events across India to create awareness and promote the listing of SMEs and startups, the exchange said.

“This MoU will help us in reaching out to ESC's pan India network of Electronics and IT exporters and create greater awareness amongst the SMEs and startups about benefits of listing on the BSE SME & Startup platform," said, Ajay Thakur, Head of BSE SME and startup.

Given Covid 19’s impact on the economy, this move will further encourage more SMEs and startups to list and raise equity capital on the exchange to expand and grow their business, he added.

Sandeep Narula, Chairman of ESC said that SMEs, especially the IT SMEs are now exposed to greater opportunities than ever for expansion and diversification across the sectors. The Indian IT industry, despite initial hiccups, remained resilient during the current crisis and its response will go a long way in cementing stronger partnerships with global clients.

Despite its commendable contribution to the nation's economy, the SME sector does not get the required support and still faces a number of problems with inadequate credit, limited capital, and knowledge being on the top.

Institutional linkages between the BSE and ESC will address this important issue, he added.

BSE launched its SME platform in March 2012 and so far 337 companies listed on its SME Platform. These firms collectively raised nearly Rs 3,500 crore from the market.

Out of these 337 companies, 99 have migrated to BSE mainboard.