In a first of its kind initiative to increase fundraising opportunities for micro, small and medium enterprises (MSMEs), NSE and UP Government enable equity funding for MSMEs through NSE Emerge platform—a dedicated exchange segment for small and medium businesses.
NSE and UP Government MoU Details
Announced in Lucknow, NSE MoU with UP Govt. is a big step for MSMEs—9.6 million of which are in Uttar Pradesh—to access capital markets. The agreement brings state level policy support with national financial infrastructure to create more inclusive and scalable growth.
The MoU was signed by Raj Kamal, IAS, MD, Uttar Pradesh Small Industries Corporation (UPSIC) and Nidhi Maheshwari, Senior Manager, NSE. Other dignitaries present at the signing were Alok Kumar, Principal Secretary for MSME and Pranjal Yadav, Secretary for MSME.
NSE Emerge: A Growth Platform Tailored for MSMEs
Speaking on the initiative, Sriram Krishnan, Chief Business Development Officer at NSE, said:
“NSE Emerge enables SMEs to raise capital efficiently and enhance their visibility in the market.”
With over 612 companies listed and INR 17,003 crore raised, NSE Emerge offers a simplified, cost-effective alternative to traditional IPOs. The platform reduces compliance complexity, shortens time-to-market, and provides structured hand-holding throughout the listing journey. Beyond funding, it also enhances business visibility, investor confidence, and corporate credibility.
Financial Incentives Under UP MSME Policy 2022
To make public listing more accessible, the MoU includes a financial incentive from the UP MSME Policy 2022—eligible MSMEs can receive up to INR 5 lakh to offset listing-related expenses. This initiative lowers the cost barrier and encourages smaller enterprises to consider equity markets as a viable path for growth.
Alok Kumar, Principal Secretary of MSME, remarked:
“With strong leadership from Chief Minister Yogi Adityanath and Industry Minister Rakesh Sachan, this partnership empowers MSMEs to improve financial health and scale sustainably.”
More Than Just an MoU: Focus on Education and Inclusion
What’s unique about this partnership is capacity building and outreach. The UP Government and NSE will conduct seminars, roadshows, MSME camps and workshops across the state. These will simplify the IPO process and give entrepreneurs the knowledge and confidence to access the equity markets.
Importantly, outreach will go beyond the urban centers and target Tier II and Tier III cities and industrial clusters—so innovation hubs across the state get exposure to formal financial systems.
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Towards a More Inclusive and Resilient MSME Ecosystem
This is part of a national agenda to integrate grassroots enterprises into the formal economy. MSMEs contribute to 30% of the country’s GDP and are the backbone of employment and regional development. Yet many still rely on informal or bank-led funding which limits their growth.
By providing a structured pathway to equity funding, institutional support and policy driven incentives this model can be a template for other states to strengthen their MSME sectors.
Conclusion: A Milestone for MSME Financing in India
The NSE-UP Government MoU is a game changer in Indian financial landscape. By aligning policy with capital market access this partnership opens up new opportunities for entrepreneurship, transparency and sustainable growth in the MSME space.
If implemented well this can redefine MSME financing—create a resilient and scalable model for economic development across the country.
Quick Tips for MSMEs Considering NSE Emerge:
- Prepare Your Financials: Ensure audited statements and a well-structured business plan.
- Improve Governance: Boost transparency and compliance to attract investors.
- Seek Expert Guidance: Work with merchant bankers or listing consultants.
- Stay Informed: Attend seminars and workshops conducted under the MoU framework.