Friday, November 15, 2013

Regulator announces new norms for listing start-up ventures

The market regulator Securities and Exchange Board of India (SEBI) has come out with new norms for listing of start-up ventures and small and medium enterprises on the Indian bourses, which would offer exit opportunities to investors.

Norms, eligibility

A start-up or SME cannot make an IPO while its specified securities are listed on ITP but can raise
capital through private placement or rights issue "without an option for renunciation of rights."
Also, a SME will be eligible to list on the ITP, in case the company, its promoter, director, group
company does not appear in the defaulters list of the RBI and there is no winding up petition against

the firm, it added.

Exit opportunity

The minimum amount for trading or investment on the ITP would be Rs 10 lakh, which would

offer exit opportunities and alternate buyers.

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