Since the outbreak of the Pandemic COVID-19 in India, there have been numerous discussions and deliberations on the MSMEs, their futures, threats and opportunities, their contributions to GDP, export and employment generation. Recently, the Central Government has also come up with new definitions of MSMEs, based on investment and turnover. With the economy growing, the need for SMEs to raise capital is thus becoming increasingly critical. Apart from traditional sources there also exist various financial products as alternate source of financing to support the growing demand of funds for SMEs. In this background, The Bengal Chamber of Commerce and Industry with National Stock Exchange of India as the 'Exchange Partner' organized a Webinar on "Alternate Sources of Funding for SME: A Capital Market Perspective" on 23rd July, 2020. The webinar was addressed by Ms. Rachana Bhusari, Vice President, SME Business Development, National Stock Exchange of India Ltd., Mr. Gaurav Jain, Director, Hem Securities Ltd (Sebi registered Category 1 Merchant Banker) and Mr. Mainak Mandal, AVP, Receivables Exchange of India Ltd (RXIL). The session was moderated by Mr. Debkumar Basu, Chairperson, Manufacturing & MSME Committee, The Bengal Chamber of Commerce and Industry.

Ms. Rachna Bhusari, Vice President, SME Business Development, National Stock Exchange of India (NSE) Limited explained the benefits of being listed on the SME 'Emerge' Platform of the NSE and the modalities of getting listed. She mentioned that the platform helps SMEs to address their primary challenge of having access to funds, which is mostly dependent on bank lending. This platform helps the SMEs to tap funds by listing shares on the Stock Exchange, improve their credibility to investors and increase their chances of getting investments. The platform also enables the companies to migrate to the main board of the Exchanges. The listed companies not only enjoys higher visibility, better credibility but also wider range of access to capital and better borrowing terms with the banks. Over 200 SMEs from the Country are now listed on the SME Emerge Platform.

Mr. Gaurav Jain, Director, HEM Securities Limited, took the audience through a 'Myth vs Reality' check, in his presentation about companies getting listed on Stock Exchanges and also shared examples to bust myths and address fears of proprietor based firms to become companies and get listed. For example, he cleared the apprehension of SMEs being taken over by other big companies, if they are listed on the Exchanges. He shared that only 25% of the companies share will be listed and even if one organization takes over the 25% share, which is not feasible, the larger share (75%) still remains with the original proprietor. Mr. Jain advised that MSME companies should explore SME platform to raise money through listing. Large number of companies from pan India of various sizes and sectors have already taken this steps and have benefited not only for Equity Valuation but also increased business branding, access to cheaper loan due to improved corporate governance, Ease in International Tie-ups & in Inorganic Growth.

Mr. Mainak Mandal, Assistant Vice President, Receivables Exchange of India Limited (RXIL), explained in detail the Trade Receivable Discounting System (TReDS) platform and how it helps to connect the buyers, sellers and financers. TReDS is an electronic platform for facilitating the finances, discounting of trade receivable of MSMEs through multiple financiers. RXIL was incorporated as a joint venture by SIDBI and NSE.