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Compliance & Regulations15 Jun 20269 min read

Navigating GeM OEM Authorization Codes and EMD Exemptions

H
HexaBid Team
HexaBid editorial team

When participating in high-value IT, security, or electronics tenders on the Government e-Marketplace (GeM), bidders are frequently confronted with two complex hurdles: obtaining the Manufacturer Authorization Form (MAF) or OEM authorization code, and successfully claiming Earnest Money Deposit (EMD) exemptions.

Decoding the OEM Authorization Code

Under GeM guidelines, buyers can mandate that sellers submit a valid MAF or OEM authorization code. This prevents the supply of counterfeit, grey-market, or non-compliant equipment. Sellers must request this code from the OEM through the portal or via official channels, linking the OEM's catalog to the reseller's account.

Failure to provide this code or uploading a fake or generic MAF is one of the top reasons for immediate technical rejection. Always request authorization codes from your OEM partners at least 7 days before the bid submission deadline.

EMD Exemptions for MSMEs and Startups

Earnest Money Deposit (EMD) is a security deposit (typically 2% to 5% of the tender value) to ensure that bidders do not withdraw their bids during the evaluation period. However, under the Public Procurement Policy, Micro and Small Enterprises (MSEs) and registered Startups are exempted from paying EMD.

To successfully claim this exemption on the GeM portal, you must:

  • Upload a valid Udyam Registration Certificate matching the exact NIC codes for the services or goods being procured.
  • Ensure your startup is recognized by DPIIT (Department for Promotion of Industry and Internal Trade).
  • Submit a signed Bid Securing Declaration in place of the physical EMD.

Automated Compliance Auditing

With HexaBid's Smart Vault, you can verify your MSE registration against the tender's requirements. The AI automatically scans your NIC codes to guarantee they cover the tender scope, preventing disqualification due to mismatched registration categories.

Stop preparing bids manually

HexaBid lets you analyze complex tenders, run PQC checks, generate compliances, and format pricing sheets in under 15 minutes.

Navigating GeM OEM Authorization Codes and EMD Exemptions — HexaBid Blog