AI SummarySubsidy for Fund Raising from SME Exchange helps growing small and medium enterprises in Tamil Nadu raise equity capital by listing on stock exchanges through an initial public offering with cash support from the state government. Government of Tamil Nadu offers up to ₹ 30,00,000 under this scheme to cover part of the listing costs, so more businesses can come on board and expand.
Subsidy for Fund Raising from SME Exchange - Introduction
Subsidy for Fund Raising from SME Exchange is run by the Micro Small and Medium Enterprises Department of Government of Tamil Nadu. It supports high-growth businesses in both the manufacturing and service sectors by paying back part of the money spent on listing and raising funds on the SME stock exchange. By cutting down the money needed to enter the market, this scheme helps entrepreneurs scale up their operations through public equity.
This is a one-time cash support given after a company successfully lists on a recognised SME exchange. Companies apply once the listing is done and the eligible expenses are incurred. The scheme is still open for Tamil Nadu based units that meet the listing rules.
Key Information
| Scheme Name | Subsidy for Fund Raising from SME Exchange |
|---|---|
| Level | State |
| Scheme For | Infra |
| Beneficiary State | Tamil Nadu |
| Category | Business & Entrepreneurship |
| Target Beneficiaries | Business Entity |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Department | Micro Small and Medium Enterprises Department |
Benefits
Under this scheme, a unit can get support of up to ₹ 30,00,000, which covers 50% of the total expenses spent during the SME IPO process. For example, if the total listing expenses reach ₹ 50,00,000, the government will pay back ₹ 25,00,000 of that cost.
The benefit is given only once, after a successful listing on the SME exchange. Only the eligible expenses mentioned in the scheme rules are counted, so businesses should keep proper records and bills for every cost.
Eligibility
To be eligible for this scheme, a unit should meet the following criteria:
- The enterprise must be a new Micro or Small unit located within one of the 254 declared industrially backward blocks of Tamil Nadu.
- It should qualify for listing according to the norms set by the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE).
- Only specific costs such as Merchant Banker Fees, Due Diligence Fees, Registrar and Transfer Agent Fees, Peer Review Auditor Fees, Exchange Fees, and Listing Charges are counted for reimbursement.
Eligible units can check their status on the official eligibility checking page.
Application Process
Application is done online through the official portal of the MSME Department. Follow the steps given below to complete the process.
STEP 1 - Visit the official MSME Tamil Nadu portal and click on the Login/Registration option. Provide personal details like Aadhaar number, email and mobile number to create the profile.
STEP 2 - After registration, open the login page and sign in with the registered credentials.
STEP 3 - Go to the Schemes section, select Subsidy for Fund Raising from SME Exchange and click on Apply Online. Fill in all the mandatory details, check the information and click Proceed to save the application reference number.
STEP 4 - In the Upload Documents section, enter the Application ID and attach all required documents in the given format and size. Verify the uploads by clicking View.
STEP 5 - Click Submit Application to finish. An update is sent to the mobile once the application reaches the relevant district office.
STEP 6 - Track the application status on the tracking page.
The application should be submitted within 6 months from the date of listing on the SME Exchange.
Documents
Keep the following documents ready in PDF format, with each file size under 200 kb:
- Copy of UDYAM Registration Certificate.
- Attested copy of Tangedco Meter Card.
- Copy of Land Purchase Deed, if the unit is on its own land.
- Lease Agreement Deed on ₹ 100 stamp paper for a minimum of 11 months, if the unit is in a leased building.
- Copy of Machinery Invoice.
- Copy of the first commercial sale invoice.
- Copy of SME Exchange registration and proof of listing.
- Proof of expenditure incurred for listing, certified by a Chartered Accountant.
References
Contact Us | Application Portal
FAQ's
What is the maximum support a unit can get?
A unit can get up to ₹ 30,00,000, covering 50% of the total expenses spent on the SME IPO.
Who qualifies for this financial support?
A new Micro or Small enterprise located in one of the 254 industrially backward blocks that meets NSE/BSE listing criteria is eligible.
What if the unit operates on leased land?
A lease agreement on a ₹ 100 stamp paper, valid for at least 11 months from the date of commencement, has to be provided.
How does a unit track the application status?
The status can be tracked on the application tracking portal.
Is there a deadline for the application?
Yes, the application has to be submitted within 6 months after listing on the SME Exchange.
Are there file requirements for the documents?
All files have to be in PDF format, with each file size under 200 kb.
Which fees are counted for reimbursement?
Merchant Banker, Due Diligence, Registrar, Transfer Agent, Peer Review Auditor, Exchange and Listing fees are all counted.
How should a unit show the expenditure?
Expenditure records verified and certified by a Chartered Accountant have to be submitted.