Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Raising Capital through SME Exchange

Description
The scheme "Scheme for Assistance to Micro, Small and Medium Enterprises MSME " is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state& 39;s dynamic MSME sector, which significantly contributes to employment, GDP, and exports. Effective from August 7th, 2020 to August 6th, 2025, this initiative supports entrepreneurs and strengthens MSMEs, making them globally competitive. The component "Assistance for Raising Capital through SME Exchange" offers a reimbursement of the expenditure incurred in raising funds through the SME Exchange.

Exclusions
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Definitions
Micro, Small and Medium Enterprise

New Enterprise

Existing Enterprise

Expansion

Gross Fixed Capital Investment (GFCI)

Forward integration, Backward Integration and Diversification

Term Loan

Pipeline Enterprises
(Source: https://ic.gujarat.gov.in/documents/commondoc/2020/3-GR_02092020.pdf)

Benefits
• **Financial Assistance:** MSMEs can avail of 25% reimbursement of expenses incurred in raising funds through the SME Exchange, up to ₹5,00,000/-. - **Equity Capital Support:** Helps MSMEs raise equity capital for business expansion and growth. - **Encouragement for Listing:** Incentivizes MSMEs to get listed on the SME Exchange, improving visibility and credibility.

Eligibility Criteria
1. - The enterprise must be registered as an MSME at the time of listing.
2. - The MSME must have successfully raised equity capital through the SME Exchange.
3. - The enterprise must apply within one year of the listing date.
4. - The fundraising should be as per the approved scheme by the SME Exchange.

Application Process
Step 1: Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "New Investor Registration" to access the registration form.
Step-2: Fill in the Registration Form. Click on "Submit".
Step-3: Verify the E-mail ID using the link sent on your r…
Online

Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "New Investor Registration" to access the registration form.
Step-2: Fill in the Registration Form. Click on "Submit".
Step-3: Verify the E-mail ID using the link sent on your registered E-mail ID.
Step-4: After verification, you will be registered successfully.
Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "Login".
Step-2: Enter the email address and password you used during registration.
Step-3: Click the "Login" button to access your account.
Step-4: Now fill in the required details and mandatory documents about your business to complete the application process.

Required Documents
• Constitution of Enterprise (Memorandum & Articles of Association).
• Board Resolution regarding Authorized Signatory.
• Copy of Udyam/IEM/LOI Registration certificate.
• Copy of SME Exchange Registration Listing related letter by BSE/NSE/SME Exchange.
• Copy of GST Registration.
• Copy of Public Issue Boucher/prospectus.
• Expenditure Statement on Letter Head.
• CA Certificate regarding MSME status as per MSMED act-2006 as on listing date.
• Audited Balance Sheet of last financial year/Annual Report.
• CA Certificate of expenditure statement for equity raise through SME Exchange with total and subtotal Headwise.
• Copy of Bills for Expenditure incurred.
• Payment Highlighted Bank Statement.
• Copy of Self Certified Share Holding Pattern (if applicable).
• Latest Electricity Bill.
• Cancelled Cheque of the Enterprise.
• Copy of Pan card of the Enterprise and Promoters/partners/directors, and Authorised Signatory.
• Undertaking in Prescribed Format.
• Copy of GPCB approvals (if applicable).
• Other details if any.

Frequently Asked Questions
Q: What is the "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)"?
A: The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" aims to position Gujarat as a global business destination by promoting sustainable manufacturing, inclusive development, and balanced regional growth.

Q: What is the duration of the scheme?
A: The scheme is effective from August 7, 2020, and will remain in operation until August 6, 2025.

Q: What is the objective of the component "Assistance for Raising Capital through SME Exchange"?
A: The component "Assistance for Raising Capital through SME Exchange" offers a reimbursement of the expenditure incurred in raising funds through the SME Exchange.

Q: What is the SME Exchange, and how does it help MSMEs?
A: The SME Exchange is a dedicated platform that allows Micro, Small, and Medium Enterprises (MSMEs) to raise equity capital by listing their businesses. It helps MSMEs gain visibility, attract investors, and secure funding for business expansion.

Q: Who is eligible to apply for financial assistance under this scheme?
A: MSMEs that have successfully raised equity capital through the SME Exchange and apply within one year from their listing date are eligible for financial assistance under this scheme.

Q: What percentage of expenses can be reimbursed under this scheme?
A: Under this scheme, 25% of the expenses incurred in raising funds through the SME Exchange can be reimbursed, up to a maximum limit of [?]5 lakh.

Q: What is the purpose of this financial assistance?
A: The purpose of this financial assistance is to encourage MSMEs to raise equity capital through the SME Exchange by partially reimbursing the expenses incurred during the fundraising process.

Q: When should an MSME apply for assistance after getting listed?
A: An MSME must apply for financial assistance within one year from its listing date on the SME Exchange.

Q: Can an enterprise that is not classified as an MSME apply for this scheme?
A: No, only enterprises classified as MSMEs on the date of listing on the SME Exchange are eligible for this financial assistance.

Q: What happens if an MSME fails to raise equity capital through the SME Exchange?
A: If an MSME fails to raise equity capital through the SME Exchange, it will not be eligible to apply for financial assistance under this scheme.

Q: What role does GVFL play in this scheme?
A: GVFL (Gujarat Venture Finance Limited) may take equity in enterprises that are registered with the SME Exchange, providing additional financial support and investment opportunities.

Q: Are there any restrictions on how the financial assistance can be used?
A: Yes, the assistance can only be used to reimburse 25% of the expenses incurred in raising equity capital through the SME Exchange, as per the approved scheme.