Subsidy for Fund Raising

The “Scheme for Fund Raising from Capital Markets” is run by the Government of Tamil Nadu, through the Department of Micro, Small & Medium Enterprises (MSME) under the umbrella of the State’s MSME Incentive Framework. The scheme was introduced to encourage high-growth potential small & medium enterprises to raise equity capital by getting listed on a recognised SME Exchange. The purpose is to support enterprises in Tamil Nadu in mobilising growth capital via equity markets and to defray part of the cost of listing. Your business can benefit by reducing the financial burden of going public/listing on SME Exchange and thereby improving visibility, credibility and access to capital.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Subsidy on expenditure incurred for listing on SME Exchange: The scheme allows eligible SMEs in Tamil Nadu to claim reimbursement of a portion of the costs they incur while getting listed on a recognised SME Exchange (for example professional fees, regulatory fees, listing fees). This helps offset the one-time high cost of listing.
High percentage of cost reimbursement (up to ~75%): According to the Policy Note and state-specific policy document, the scheme provides reimbursement of roughly 75% of the listing expenditure, making it very attractive.
Maximum cap on subsidy amount (e.g., ₹30 lakh): While the percentage is high, there is a ceiling on the actual amount reimbursable. For example, the state guidance mentions a maximum reimbursement of ₹30 lakh for successful listing on the SME Exchange.
Targeted at high growth potential SMEs in Tamil Nadu via SME Exchange listing: The scheme is designed to help SMEs in Tamil Nadu that are seeking to raise equity capital through an SME Exchange (via IPO or similar route). The wording emphasises “high growth potential” SMEs.
One-time benefit applicable at the time of listing only: The incentive is intended for the listing event (or associated listing cost) in the SME Exchange not for ongoing operations or subsequent rounds. The scheme supports the cost incurred for listing

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Cost of listing on SME Exchange	~ 75% reimbursement of listing related expenditure, subject to a maximum of about ₹30 lakh	Example: If your SME incurs ₹40 lakh of listing fees, professional fees etc. for an SME Exchange listing, you may claim 75% of that = ₹30 lakh (since cap is ₹30 lakh).
One-time assistance	One-time payment after successful listing	Example: After your company is listed, you submit claim documents; the State reimburses the approved amount in a single payment.

Eligibility Criteria

Who can apply:

MSME units registered and operating in Tamil Nadu as per state MSME policy.
Firms planning or having completed listing on a recognised SME Exchange (capital markets) and incurring listing/expenditure costs eligible under the scheme.
Must comply with relevant state policy norms such as job creation, manufacture/industry category if specified.

Who cannot apply:

Firms not registered/operating in Tamil Nadu or outside the MSME category if policy restricts to new manufacturing SMEs.
Companies that have incurred listing costs outside the defined timeframe or not submitting requisite expenditure proof as required by the scheme.
Entities that do not meet the SME Exchange listing criteria or whose listing process is not accepted as per scheme rules.

Documents Required

MSME registration certificate (UDYAM/State MSME) of the enterprise.
Proof of listing or planned listing on an SME Exchange – listing certificate or acknowledgement, exchange details.
Invoices/receipts/expense statements for costs incurred for listing: underwriting fees, advisory fees, regulatory fees, preparation cost, etc.
Audited financial statements or CA certificate verifying expenditure if required.
Bank details for subsidy disbursement.

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
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Option 2: Government Portal / Online Application

Visit the official portal for the Tamil Nadu MSME/Industries incentives (e.g., the “Guidance Tamil Nadu / MSME” page) which lists the “Scheme for Fund Raising through SME Exchange”.
Log in or register your enterprise as per the portal instructions.
Navigate to the scheme section “Subsidy for Fund Raising from Capital Markets – SME Exchange”.
Fill in the online application form: details of company, planned or completed listing, cost incurred, exchange details, etc.
Upload supporting documents: listing fees, expense invoices, proof of listing process, MSME registration, etc.
Submit application within stipulated claim period (as per scheme notification). Monitor status via portal.

Option 3: District/Office Submission

Visit the local District Industries Centre (DIC) or MSME nodal office in your district.
Collect scheme notification and application form from the office or portal.
Submit completed form along with attached documents physically or as per guidelines.
Follow up with officer for sanction and reimbursement processing

Power Combos with The Scheme