In a first of its kind move to revolutionize fundraising for India’s micro, small and medium enterprises (MSMEs), National Stock Exchange (NSE) and Government of Uttar Pradesh (UP) have signed a Memorandum of Understanding (MoU) to facilitate equity funding through NSE Emerge platform.
The partnership, announced in Lucknow, is a big shift in how MSMEs can access capital markets, especially in UP which has 96 lakh MSMEs. This aligns state level policy support with national capital market framework and will lead to more inclusive and scalable growth.
UP Govt Signs MoU with NSE to Empower MSMEs
The MoU was signed by Raj Kamal, IAS, MD of Uttar Pradesh Small Industries Corporation (UPSIC) and Nidhi Maheshwari, Senior Manager at NSE in presence of top government officials including Alok Kumar, Principal Secretary for MSME and Pranjal Yadav, Secretary for MSME.
This MoU will help MSMEs to improve their fundraising capabilities by guiding them through a structured and credible public listing process on NSE Emerge, a dedicated segment of the exchange for SMEs.
Sriram Krishnan, Chief Business Development Officer at NSE said:
“NSE Emerge enables SMEs to raise capital efficiently and increase their visibility.
Why NSE Emerge Is a Game-Changer for MSMEs
NSE Emerge is fast becoming the bridge between high potential small businesses and growth focused investors. Currently 612 companies are listed on NSE Emerge having raised over INR 17,003 crore with a combined market capitalization of around INR 1,76,565 crore.
Unlike the traditional IPO route which is resource intensive and complex for smaller firms, NSE Emerge simplifies the compliance process, shortens time to market and provides hand holding throughout the listing journey. Beyond capital, the platform brings in visibility, investor confidence and long term business credibility.
Financial Incentive: INR 5 Lakh Support Under UP MSME Policy 2022
One of the key features of the MoU is the government backed financial incentive. Under the UP MSME Policy 2022, eligible MSMEs will get up to INR 5 lakh to cover listing expenses. This reduces the cost barrier and encourages small enterprises to explore public listing as a growth option.
Alok Kumar, Principal Secretary of MSME, noted:
“With strong leadership from CM Yogi Adityanath and Industry Minister Rakesh Sachan, this partnership will enable MSMEs to access equity markets, improve financial stability and scale sustainably.”
More Than a MoU: Outreach, Capacity Building and Inclusion
What makes this MoU different is the focus on capacity building and outreach. UP Govt and NSE will be organizing seminars, roadshows, MSME camps, workshops and awareness drives across the state. These initiatives will demystify the IPO process and empower entrepreneurs with knowledge and confidence to access equity markets.
This outreach is not limited to urban areas; it is specifically targeting Tier II and Tier III cities and industrial clusters so that innovation hubs beyond metros get the exposure they need.
NSE Signs MoU: A Step Towards Financial Inclusion and Sustainable Growth
UP Govt signs MoU with NSE to focus on a larger national agenda: to integrate grassroot enterprises with India’s formal financial systems. MSMEs contribute to nearly 30% of India’s GDP and are the biggest job creators and regional developers. However their dependence on bank loans and informal funding has often limited their growth.
This initiative will bridge that gap by offering a structured route to equity funding, corporate governance and sustainable growth. By providing institutional support and financial incentives the MoU will create a scalable and replicable model for other states to follow.
Conclusion: A Forward-Looking Model for MSME Financing
NSE signs MoU with UP Govt marks a transformative moment in India’s MSME ecosystem. By enabling easier access to equity funding through NSE Emerge and supporting it with state level incentives the partnership brings together policy intent, infrastructure and capital market access.
If implemented well this model can change the way MSMEs grow in India – fuel entrepreneurship, encourage transparency and promote financial inclusion.
Additional Insights & Tips for MSMEs looking to list on NSE Emerge:
- Prepare Financials: Ensure audited financial statements and clear business plans.
- Governance Readiness: Improve transparency and documentation to attract investors.
- Advisory Support: Engage with merchant bankers or listing consultants.
- Awareness Programs: Attend upcoming seminars and workshops organized by the MoU partnership.