Equity a great option for SMEs to access funds, Mr. Ajay Thakur, Head, SME & Startup, Bombay Stock Exchange

No.PR-39 April 29, 2020 New Delhi Equity a great option for SMEs to access funds, Mr. Ajay Thakur, Head, SME & Startup, Bombay Stock Exchange Finance is the called the lifeblood of Small & Medium Emterprise (SME), and it is the only lubricant that can keep the organization going. PHD Chamber of Commerce and Industries conducted an interactive on ‘SME Equity Listing on Stock Exchanges - Govt Participation’ with Mr. Ajay Thakur, Head, SME & Startup, Bombay Stock Exchange on 29th April 2020. The session witnessed a participation of more than 50 industry players and senior’ members of PHD Chamber all over the country. Mr. Ajay Thakur, Head, SME & Startup, Bombay Stock Exchange, appreciated PHD Chamber of Commerce and Industry to organize such an interactive webinar such a significant matter in these unprecedented times and said that this is the time when every business needs to keep on crawling and survive these times of COVID-19. Deliberating the participants on the overview of the SME Equity Listing on Stock Exchanges, Mr. Ajay Thakur discussed widely on the fact that while the industry is trying their level best to survive these times, they should also focus on maintaining a positive outlook. While we are facing a lot of issues, we have also seen a balance is the market in some aspects. MSMEs who are planning to come in the market they should come in the SME sector as they can be benefited in some way, said Mr. Ajay Thakur. Mr. Ajay Thakur said that over the past three years, we have tried our best to give profit to every company registered with us. We have grown tremendously in terms of business being registered with us and we try our best to transform in income and profit level of every company. We are trying our best to develop and upgrade ourselves so that the registered companies can be benefited in the best possible way. He highlighted that there is a need for educating companies regarding the importance and significance of the equity market through which companies can gain profit and make a mark in the market. He gave a detailed insight into the process and criteria of registration for the companies. Dr. D K Aggarwal, President, PHD Chamber of Commerce and Industries, in his presidential address mentioned that in these times of COVID-19 when liquidity is going to be the biggest issues for the MSME sector, one of the sources of finance is equity in which one doesn’t need to pay interest and the return is also mind-boggling. In BSE, as for now, 322 companies have been registered and have raised Rs. 3,300 Crores. The market capitalization of these companies stands at Rs. 16,000 Crores. So, seeing the success we can say that there is something positive in getting registered as it is a profitable and wealth-creating tool for the company in the short and long run. It is also helpful in getting the loan as shares can be applied for the same. It also ensures good corporate governance and raise the profile of the company in the market, said Dr. D K Aggarwal. Dr. D K Aggarwal highlighted that equity will always remain profitable for a long period for any type of company. He also raised his queries regarding due to this COVID-19 MSME is most affected, how many MSME are in AAA-rated and those who are AAA-rated are considering for listing. He also raised queries regarding the kind of companies that will be able to subscribe in these tough times. My Anil Khaitan, Former President PHD Chamber, gave a warm welcome to all the panelists and participants. He discussed the concept of rejuvenating the MSME sector. COVID-19 pandemic has devastated businesses around the world. MSME, in particular, has been hurt by the shut down of factories, the absence of workers, and supply chain disruption. Though the government is trying to provide liquidity and financial support in the best way possible. But many companies can better be supported though cash infusion of pseudo- inequity finance management. Explaining further, he said that rather than offering debt financing, the government can make direct investments in businesses by taking a minority stake in it which can be recovered through higher taxes, profit, and business income which can be recovered over time. Pseudo- inequity finance management can be more sustainable for equity finance and can benefit over the long term for most of the industry including the MSME sector. My Anil Khaitan also gave a detailed scenario of the financial market and also give a valuable suggestion and inputs which can help to boost the financial market and stocks of the Indian market for long terms. He raised his concern regarding how MSMEs are going to survive this period of uncertainty and distress. Mr. H P Kumar, Advisor of PHD Chamber of Commerce and Industry gave an insight into the SME, Equity Listing, and Stock Exchanges. He shared the issues and challenges faced by the industry while also suggesting relief measures and steps to ensure the smooth working of the industry in the country. The session had a question-answer round where Mr. Ajay Thakur answered all the questions and enquires. He also noted the queries and ensured that he will resolve them and raise them in the concerned forums. The webinar was moderated by Dr. Ranjeet Mehta, Principal Director, PHD Chamber. The webinar was attended by Shri Pradeep Multani, Vice President, PHD Chamber and My Anil Khaitan, Former President PHD Chamber, other senior PHD members, and industry stalwarts. Ends Media Division PHD Chamber of Commerce and Industry