SEBI to introduce alternative home platform for startups


A side by side trading platform for startups on the internet is what the The Securities and Exchange Board of India (SEBI) plans to set up in the near future. The trading platform should be open to a large gamut of technology companies, as per the talks at SEBI’S board meeting, held every quarter. This aims to inspire the companies to get listed at home countries instead of venturing to list their businesses overseas. This venture has plans to tempt the startups that are looking to get overseas listings into getting listed at home. India has very strict requirements for given IPOs presently. Some requirements like the lock in period has been reduced to six months from three years tenure for the investors, thus diluting to some extent the procedure for disclosure of some companies, SEBI reported.

The investors should start making an easy exit. As per statistics, around 3100 startup companies in India have raised a hue and cry through the accumulation of $7.2 billion in private equity and in venture capital, since 2013, as per the reports of the Thomson Reuters data.

U.K Sinha, the Chairman, SEBI is hopeful about the market going quite vibrant after having the startups listed in their own country according to the plan, as per his talks at a news conference. Investors all around the world are drawn to the technological set up of India. Thus start ups can apply for a total listing on the main exchanges right away. Startup CFOs are also much optimistic about the SEBI measures. SEBI adopted other measures like reduction in the time span for listings thus allowing easy access to the retail investors. SEBI also aims to take up some new standards for the stakeholders, allowing them not to own more than ten percent of the business after they have exited from the investments.


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