How BSE-HDFC Bank pact will benefit startups
Asia's oldest stock exchange, BSE, has signed a memorandum of understanding (MoU) with HDFC Bank to spread awareness on benefits of listing on BSE's startup platform.
Asia's oldest stock exchange, BSE, has signed a memorandum of understanding (MoU) with HDFC Bank to spread awareness on benefits of listing on BSE's startup platform. BSE had launched the startup platform on December 22, 2018 with an aim to encourage entrepreneurs to get listed and raise equity capital for their growth and expansion.
The benefits of BSE and HDFC Bank tie-up:
1. This will help spread awareness about BSE's startup platform among HDFC Bank's portfolio of startups. Also, extend value-added support for eligible startups, along with BSE for the listing.
2. Offer banking and lending solutions to eligible startups already listed or due-to-list on the BSE Startup platform.
3. Access capital via BSE's startup platform. It will enable startups to raise growth capital and enhance tradability of an otherwise illiquid/high-risk investment asset class.
“This is part of our commitment to the larger cause of strengthening the Startup community/ecosystem in the country. Startups are today reimagining and reshaping the world we live in. We are already partnering with them by mentoring them and giving them a chance to work with us. We are extremely happy to reinforce our commitment to them through this partnership with BSE,” said Smita Bhagat, country head – government, e-commerce and startups at HDFC Bank.
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BSE is the first exchange to launch the startup platform. The idea behind the startup platform was to help entrepreneurs look beyond the conventional channels of raising capital and enabling them to list on the stock exchange to further enhance the credibility of the firm.
"While we have conducted numerous seminars in Tier 1, 2 and 3 cities on the benefits of listing on the BSE startup platform, we believe by associating with a leading bank like HDFC that boasts of a large network, presence and start up base would enable more firms to choose our platform and raise funds as well as improve productivity,” said Ajay Kumar Thakur, head, BSE SME and startup.