Question

Justify the following statement.

SIDBI provides different types of financial and non-financial services through its subsidiaries.

Answer 1

The following are the subsidiaries of SIDBI that provides financial and non-financial services:

1. SIDBI Venture Capital Ltd. provides venture capital to emerging sectors, such as life sciences, biotechnology, pharmaceuticals, engineering, and information technology.
2. Credit Guarantee Fund Trust for Micro and Small Enterprises is a trust to implement the Credit Guarantee Scheme through which credit faculties are extended without third party guarantee on collateral security by eligible lending banks/financial institutions.
3. SME Rating Agency of India Ltd. was set up by SIDBI, Dum & Bradstreet Information Services India Pvt. Ltd. and several public, private and foreign sector banks as an MSME. It is a dedicated third-party rating agency and prov1de comprehensive, transparent, and reliable ratings and risk profiling.
4. India SME Technology Services Limited is a platform where MSME’s can tap global opportunities for acquiring new emerging technologies and establish business collaborations.
5. India SME Asset Reconstruction Company Ltd. is an asset reconstruction company. It acquires non-performing assets and tries to resolve them through its innovative mechanisms. It especially focuses on the non-performing assets of the MSME sector.
6. Micro Units Development and Refinance Agency is established for ‘funding the unfunded’ micro-enterprises in the country.
7. Thus, SIDBI provides different types of financial and non-financial services through its subsidiaries.