press trust of india, New Delhi, June 12: To attract technology start-ups to the domestic stock markets, regulator Sebi is set to make their listing and fund raising requirements easier.
The final norms, which would be presented for approval for the Sebi’s board later this month, have been finalised after taking into account suggestions from all stakeholders to the draft guidelines released in March, sources said.
Asking technology startups founded by Indians to remain within the country, Sebi chairman U K Sinha, last weekend, promised an easier set of regulations for them to get listed and raise funds from the domestic stock market.
“We are going to take a decision very soon in this regard. We are looking into how to make it easier for them to raise money,” Sinha had said.
The new norms are expected to help startup companies raise funds within India and stop their flight to overseas markets. “What is happening today is most of these startups, who have been reasonably successful, they are getting attracted to the New York Stock Exchange or Singapore Stock Exchange,” Sinha had said.
“They do not want to get listed here for varieties of reasons. They are getting attracted to foreign markets. Our effort is to provide a mechanism that they get listed in India itself,” he had added.
Under the new norms, the entire pre-issue capital is expected to be locked-in for a period of six months for all shareholders.
At present, promoters are required to offer a minimum of 20 per cent of post-issue capital as lock-in amount for three years.
