MoD & NSE ink MoU to facilitate capital market access to MSMEs

Current Context: On July 29, 2024, the Ministry of Defence (MoD) and the National Stock Exchange of India Limited (NSE) signed a Memorandum of Understanding (MoU) to empower Micro, Small, and Medium Enterprises (MSMEs) in the defense sector with capital market access in New Delhi.

• This five-year MoU aims to facilitate MSMEs’ growth by allowing them to raise productive capital efficiently and transparently through the NSE Emerge platform.
• As part of the agreement, extensive awareness drives, including seminars, MSME camps, knowledge sessions, road shows, and workshops, will guide corporates engaged with the Ministry of Defence in fund raising on the NSE Emerge platform.
• NSE will also assist MSMEs in connecting with intermediaries such as merchant bankers, registrars, transfer agents, and depositories, guiding capital markets, capital raising mechanisms, and regulatory compliance.

Question:

1 What was the main objective of the MoU signed between the Ministry of Defence (MoD) and the National Stock Exchange of India Limited (NSE) on July 29, 2024?

• A) To develop new defense technologies
• B) To empower Micro, Small, and Medium Enterprises (MSMEs) in the defense sector with capital market access
• C) To create a new stock exchange in India
• D) To merge the MoD with the NSE

Answer: B) On July 29, 2024, the Ministry of Defence (MoD) and the National Stock Exchange of India Limited (NSE) signed a Memorandum of Understanding (MoU) to empower Micro, Small, and Medium Enterprises (MSMEs) in the defense sector with capital market access in New Delhi.