Bombay Stock Exchange signs pact with ESC to encourage listing of start-ups

On Tuesday, Bombay Stock Exchange (BSE), a leading stock exchange, announced that it has collaborated with Electronics and Computer Software Export Promotion Council (ESC) to build awareness among small businesses and start-ups, about the advantages of listing.

ESC is a Government of India sponsored establishment that aims to promote the India’s export of Information and Communications Technology (ICT) sector and acts as a bridge between the government and the industry on promotional and policy matters.

It has a robust association of > 2,300 ICT exporters including the entire range of the electronics and IT industry in the areas like computer hardware, components, consumer electronics, instrumentation, telecommunications, as well as IT-enabled and software services.

Through this agreement, ESC would leverage its network of IT and electronics exporters across India and assess start-ups and the small and medium enterprises (SMEs) for listing on the BSE SME and start-up platform.

In addition, the ESC’s network would get assistance for investing in SMEs listed on the BSE SME platform.

According to the exchange, “To enhance awareness and promote its platform, various events and roadshows would be conducted as a collaborative effort.”

Mr. Ajay Thakur, Head of BSE SME and start-up, said, “This MoU would help us leverage ESC's pan India network of IT and Electronics exporters and build bigger awareness amongst the SMEs and start-ups about advantages of listing on the BSE SME & Start-up platform.”

 

He added, the initiative would also help wide range of SMEs and start-ups to list on the exchange and raise equity capital and further grow their business.

Mr. Sandeep Narula, Chairman of ESC said, “SMEs (particularly the IT SMEs) are now subjected to greater opportunities for diversification and expansion across the sectors. The IT industry in India remained resilient during the pandemic induced challenges and its response will go a long way in bolstering greater alliances with global customers.”

He added, institutional ties between the BSE and ESC would cater significant areas to boost further growth in the sector through providing required support, offering opportunities to raise capital and build more awareness of the resources available in the market to improve business.

In March 2021, the SME platform was launched by BSE and 337 firms are listed on the platform so far, who have collectively raised ~ Rs. 3,500 crore (US$ 482.69 million) from the market.

Out of the total number of companies listed on the platform, 99 firms have migrated to BSE primary platform.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.