Startups in India can raise money through capital market, norms eased


There’s some cheer for startups in India. The Securities and Exchange Board of India (SEBI) has said it would soon be setting up an alternate platform for “Internet startups”. Not only that SEBI Chairman U K Sinha also dropped enough hints that crowdfunding would soon be legally permitted in India.
 
The capital markets regulator relaxed its regulations for startups to list and raise funds through this new exchange to encourage the companies list in India itself rather than abroad. 
Some of the norms relaxed by SEBI include:
  • Reduction in the lock-in period for investors in these startups to six months in comparison to three years regular
  • Disclosure norms for startups listing themselves in this platform would be diluted
  • Process for startups to raise funds through Initial Public Offers (IPOs) fast-tracked by reducing the listing time to 3 days from original 6 days. 
SEBI’s new norms have, however, not allowed small individual retail investors to invest in startups. The minimum cap for an investor investing in such a venture would be Rs 10 lakh. Right now it is looking at institutional investors, High Network Individual & Non Resident Indian investors. At least 25% of the pre-issue capital would need to with institutional investors for technology startups, while for companies from other areas this requirement would need to be 50%. The norms allows for 75% shares to be reserved for institutional investors. 

Start-ups get funding boost: Sebi sets easier IPO norms, halves listing time … – Firstpost

http://news.google.com Jun 24, 2015 

The Securities and Exchange Board of India board on Tuesday took a slew of decisions that would encourage new technology start-ups to list on the domestic …

Read more …

Startups hail Sebi move; say it will raise local visibility – The Hindu

http://news.google.com Jun 25, 2015

Kerala, with its growing host of new generation entrepreneurs relying on new technology, has reacted enthusiastically to capital market regulator Securities and Exchange Board …

Read more …

SEBI plans new platform to help startups get listed and raise funds – YourStory.com

http://news.google.com Jun 22, 2015 

In a new wave of reforms, markets regulator SEBI is set to herald an e-IPO system to allow investors to bid online in the public offers, while the new-age …

Read more …

India set to change listing rules for start-ups – Financial Times

http://news.google.com Jun 21, 2015 

India set to change listing rules for start-upsFinancial TimesThe Securities and Exchange Board of India (Sebi), the country’s markets regulator, is expected to green-light the rules at a meeting on Tuesday, paving the way to launch a new trading platform …

Read more …


 

 

 

•Share This•