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ASSOCHAM Meet on Funding Opportunities for MSME

New Delhi, 01st October 2021:The Small Industries Development Bank of India (SIDBI) has introduced various schemes and initiatives for small business owners to help them tide over Covid-19-induced economic struggles, an official explained in an ASSOCHAM webinar today.

"SIDBI has come up with variety of lucrative new schemes post-COVID pandemic that are available for manufacturing, services, greenfield units along with other industries and sectors," said Mr S.K. Meena, DGM & Regional Manager (West Bengal & NER States), SIDBI, Guwahati in a Lenders-Borrowers Meet on Funding Opportunities for MSMEs organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

UbharteSitaare, STHAPAN, ARISE, SHWAS, SAFE, STAR, TULIP, SPEED Plus, ECLGS are some of the schemes, features and benefits of which were explained by the SIDBI official in the virtual meeting attended by several MSMEs.

"These are the some of the schemes available with SIDBI and banking platforms, you can approach your respective bank and avail these schemes," said Mr Meena.

He also said that SIDBI has tied up with three banks for extending the working capital limit. "Recently we have made arrangements with some of the banks including IDBI Bank, Yes Bank and City Union Bank, whereby we are using their platform and extending the working capital limit to our customers."

Sharing the latest Emergency Credit Line Guarantee Scheme (ECLGS) updates, he said that SIDBI has extended the guidelines and time for the benefit of MSMEs, he said, "The ECLGS is open and the last date has been extended, it is a very easy scheme as no stringent paperwork formalities are requrired and rate of interest is very reasonable with each of the banks."

Sharing his perspective on the need for bringing MSMEs on to the capital markets, Mr Ajay Thakur, Head-BSE SME & Startups, Bombay Stock Exchange tried allaying the fear, doubts and highlighted various benefits for SMEs to get listed on to the stock exchange.

"Today, we have got 348 SMEs listed on the SME platform, they have raised almost raised Rs 3,710 crore (cr) from the market and today the market capitalization is almost Rs 37,100 cr. So, this much of wealth has been created," said Mr Thakur.

Terming the guidelines as very simple for SMEs to get listed on the stock exchange, he said, "Any company which is in existence for three years and in any one year they have got operating profit with Rs 1.5 cr net tangible assets and paid-up capital below Rs 25 cr can get listed on to the SME platform of stock exchanges."

Talking about the benefits for SMEs for getting listed on stock exchanges, he said, "Now you have a platform whereby you can raise funds by diluting your equity, the balance sheet post-listing gets strong, company gets visibility, credibility, equity becomes your collateral, so these are benefits that you can enjoy by getting your company listed on to the stock exchange."

He also said that eligibility criteria have also been reduced for companies to get listed on to the SME platform of the stock exchange. "The only thing is that they must remove that inertia, bottlenecks, give up fears and venture into getting themselves listed onto the stock exchange. That is the only thing that these promoters have to do. We have seen the companies creating huge value and we have seen the companies transforming."

Allaying the fears of the promoters regarding SME platforms, he said, "We have reduced the compliances to minimal, the company has only to file the result on half yearly basis that also unaudited and yearly audited results they have to file. So as far as the compliances are concerned, it is much more lesser than the main board, so the companies don't have to fear for anything."

He added that out of 348 companies on the SME platform, 114 companies on their own have decided to migrate to the main board. "It means that there is no reason to be scared of getting yourself listed onto the stocks."

Amid other industry thought leaders who participated in the panel discussion included - Mr Narinder Wadhwa, chairman, ASSOCHAM National Council for Capital Markets and Investors & Founder-Chairman, SKI Group; Mr AshisNundy, ASSOCHAM Committee Member and Chairman, Financial Services-Sub Council, East; Mr Prasanna Lohar, Chief Innovation Officer & Head-Digital Banking, DCB Bank; Mr Ravindra Nath, Former CMD, National Small Industries Corporation Ltd.; Mr Somnath Chatterjee, Founder & CEO, PKS Capital Advisory LLP and Mr Mukesh Bubna, Founder & CEO, Monexo.

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