In recent times, there has been a major thrust on financial inclusion. Starting with Self Help Groups (SHGs) and the SHG-Bank linkage model, it has moved to Micro Finance Institutions (MFIs), NBFCs, and now small finance banks. The poor have been recipients of loans. But is there an opportunity today to include them not merely as customers for loans, but also as owners or shareholders and participants in the capital markets? Beyond that, can the marginalized become significant players in this market – not merely as investors in the stock market, but as promoters and owners of business? What does International experience tell us about this type of initiative?

We highlight one recent initiative. The Producer Company section was first introduced in the Companies Act in 2002 and retained in the 2013 Act as well. It is an enabling and bold legislation for small producers, but lack of access to capital has held back the growth of these companies. It is important to find ways to integrate them with the capital and debt markets like other countries have done. We suggest some ways forward based on our need and the experience of other countries. All these methods would allow outside investors who are not primary producers to contribute share capital in different forms. This would require some amendments to existing laws and regulations. Producer Companies can enable primary producers to significantly increase their incomes and help about 10 crore families who are in farming.