IPS Assistance for SME Exchange Listing — Up to ₹5L for MSMEs — Frequently Asked Questions

It is the "Assistance To Small And Medium Enterprises (SME) For Raising Of Capital Through SME Exchange" sub-scheme, which falls under the larger Investment Promotion Scheme (IPS) for the MSME Sector. The Department of Industries, part of the UT Administration of Dadra and Nagar Haveli and Daman and Diu, administers it. Its stated purpose is to encourage MSMEs in the Union Territory to tap public markets for capital by sharing the cost of doing so.

You can claim 25% of the expenditure you incurred on raising capital through an SME Exchange, subject to a maximum of ₹5,00,000. If 25% of your eligible costs exceeds ₹5 lakh, the assistance stays at ₹5 lakh. If it is lower, you receive that lower figure. It is a single, one-time payment rather than a yearly benefit.

No. The assistance is non-dilutive — it comes as a subsidy or reimbursement, and the department does not take shares, a stake or any ownership in your unit in exchange. Any equity your business issues is raised from investors on the SME Exchange, not from the government.

Your unit must be an MSME operating in the manufacturing or service sector within the Union Territory of Dadra and Nagar Haveli and Daman and Diu. Both new units and existing units that are undertaking expansion or diversification are covered. On top of that, commercial production has to have begun between 20 May 2022 and 19 May 2027, and the unit must have genuinely raised equity through an SME Exchange.

There is no single closing date — applications are accepted on a rolling basis. The binding deadline is personal to your unit: you must apply within one year of your listing date on the SME Exchange. The scheme itself remains in force for the period 20 May 2022 to 19 May 2027, so the one-year window has to fall inside that period.

No. The unit has to be located in the Union Territory of Dadra and Nagar Haveli and Daman and Diu. This is a region-specific incentive, so a unit operating elsewhere would not meet the location condition.

The eligibility conditions published for this sub-scheme are built around your unit being an MSME in the manufacturing or service sector, its location in the Union Territory, the date commercial production began and the completed SME Exchange listing. DPIIT recognition or a separate registration is not listed among those stated conditions. It is worth confirming the current document requirement in the scheme notification before you file.

It is a reimbursement, so it follows the event. The expenditure has to have been incurred on raising funds through an SME Exchange, and it applies after a successful equity raise. Put simply, you complete the listing and the capital raise first, then apply to recover a share of the cost.

The process runs entirely through the Single Window Portal. Register at the registration page with your details, verify your email through the link sent to your inbox, then verify your mobile number using 111111 as the OTP — your mobile number and PIN are emailed to you. Log in with your registered mobile number and that PIN. From the left-side menu, open Departments & Services, scroll to District Industries Centre DD & DNH and click through to the Investment Promotion Scheme 2022 to 2027 (20 May 2022 to 19 May 2027). The Common Application Form then opens — fill in every required field, upload the mandatory documents, recheck the details and hit Submit.

The complete terms and conditions are set out in the notification PDF at https://swp.dddgov.in/assets/pdf/Notification_IPS_2022_DNH_DD.pdf. For technical support with the Single Window Portal (https://investdd.in), call 0260-2231885 or 0260-2231886, or write to ddegs-dd@nic.in.

IPS Assistance for SME Exchange Listing — Up to ₹5L for MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.