National Stock Exchange Chief Executive Officer Ashish Chauhan has urged startups and Micro Small and Medium Enterprises to explore stock market listing as an important step toward long term business growth and expansion. Addressing entrepreneurs and industry stakeholders, Chauhan highlighted the role of capital markets in helping businesses raise funds, improve corporate governance, and build investor confidence.
According to Chauhan, many startups and MSMEs focus primarily on bank financing or private investments during their early stages. However, he noted that public listing offers an alternative avenue for raising capital while providing businesses with greater visibility and access to a wider investor base.
He emphasized that listing on a recognised stock exchange is not only about raising funds but also about improving transparency, accountability, and corporate governance. Companies that meet regulatory requirements and maintain high disclosure standards are often viewed more positively by investors, customers, suppliers, and financial institutions.
Chauhan stated that India's startup ecosystem has grown rapidly over the past decade, with innovation expanding across sectors such as technology, manufacturing, healthcare, financial services, renewable energy, and consumer products. As businesses mature, access to long term capital becomes increasingly important for supporting expansion, research, product development, and job creation.
He also pointed out that MSMEs play a vital role in India's economy by contributing significantly to employment, exports, and industrial production. Public market participation can help these enterprises diversify their funding sources instead of relying solely on traditional borrowing methods.
The National Stock Exchange has established dedicated platforms to facilitate the listing of eligible small and medium enterprises. These platforms are designed to help growing businesses access equity capital while complying with regulatory standards prescribed by the Securities and Exchange Board of India.
Industry experts believe that stock market listing provides several long term advantages beyond fundraising. Listed companies often benefit from improved market recognition, stronger corporate branding, enhanced credibility among business partners, and greater opportunities for strategic investments and acquisitions. Publicly traded shares can also provide liquidity for existing investors and early stakeholders.
However, experts also caution that becoming a listed company involves ongoing responsibilities. Businesses must comply with disclosure requirements, financial reporting standards, corporate governance norms, and regulatory obligations. Companies considering an initial public offering are advised to strengthen their financial systems and governance frameworks before entering the capital market.
India's capital markets have witnessed increasing participation from retail investors in recent years, creating a broader investment ecosystem for emerging businesses. Policymakers and market institutions continue to encourage greater participation by startups and MSMEs as part of the country's efforts to promote entrepreneurship, innovation, and economic development.
Ashish Chauhan's remarks underline the growing importance of equity markets in supporting India's next generation of businesses. As more startups and MSMEs evaluate public listing opportunities, market experts expect capital markets to play an increasingly significant role in financing business growth and strengthening the country's entrepreneurial ecosystem.