How it works
One lawful mechanism, explained end to end.
Everything on MSME Exchange is a private placement under Section 42 of the Companies Act 2013: a company’s offer to identified investors, documented, limited and filed. The platform’s job is to verify what can be verified, keep the record reconstructable, and stay out of the money.
A technology platform, not a stock exchange. No trading, no order book, no price. We never hold your money or your shares.
Follow the money
Investor → company. Company → your demat. Us → neither.
Subscription money goes from your bank account to the issuing company’s own bank account. Shares are allotted by the company to a demat account in your name. The platform is in the evidence path, never the payment path.
For investors
Your journey, in seven stages.
- 1
Discover
Sign in and complete verification. Opportunities are shown only to identified persons — that is the law, not a policy.
- 2
Research
Company information that carries the source and date of every check, with documents and disclosures.
- 3
Invest
Commit to an offer made to you in Form PAS-4. Subject to eligibility, the risk acknowledgement and the §42 limits.
- 4
Hold
Shares are allotted by the company to a demat account in your name. We hold nothing.
- 5
Track
Your portfolio as a record: what you committed, what was allotted, at cost — unlisted shares have no market price.
- 6
Updates & disclosures
Company disclosures stay versioned and dated on the same record you invested from.
- 7
Transfer / liquidity
A transfer the company approves happens through the depository; a real market exists only once a company reaches a recognised exchange.
* Subject to applicable law, investor eligibility, the characteristics of each security and any regulatory permissions required. No resale venue is operated here and no liquidity is promised.
For MSMEs
Raising, from first check to filed allotment.
- 01
Register & verify
Identity, CIN, GST and filings are checked against the record, and every check stores its source and date.
- 02
Build the profile
Financials, capital structure, shareholding and disclosures — the structured record investors will actually rely on.
- 03
Prepare the round
Board identifies the persons to be offered to; the offer is documented in Form PAS-4, with the register in PAS-5.
- 04
Raise
Identified investors commit. Subscription money goes to the company’s own bank account — never through this platform.
- 05
Allot & file
The board allots within the statutory window; the return of allotment is filed in PAS-3. The record stays reconstructable.
- 06
Raise again, or list
Later rounds build on the same verified history — and the readiness track prepares eligible companies for BSE SME / NSE Emerge.
The rules that shape everything
Four numbers worth knowing before either journey starts.
200
identified investors at most, per company, per financial year, per kind of security — enforced when you commit, not discovered later.
PAS-4
the private placement offer letter. The offer is the company’s, made to identified persons; the platform documents and evidences it.
₹0
held by this platform, ever. Money moves investor → company; securities move company → your demat account.
No price
displayed anywhere. There is no market for unlisted shares and no price to publish — holdings are shown at cost.
Investments in unlisted securities carry the risk of losing the entire amount, and holdings may not be sellable for years, or at all. Read the Risk Disclosure and the Terms of Use before committing anything.