Wednesday, September 16, 2015

SEBI gives start- ups shot in the arm


  • Start- ups can now get listed on a separate institutional trading platform of the stock exchanges, such as BSE and NSE 
  • The new platform would be open to only institutional investors and HNIs 
  • SEBI has also relaxed the mandatory lock-in period for promoters and other pre listing investors to six months. 
  • At least 25% of their pre-issue capital would need to be with institutional investors for technology start-ups, while this requirement would be 50% for companies from other areas
  • Institutional investors, along with family trusts, systematically important NBFCs and intermediaries registered with SEBI- with minimum Net Worth of `500 Crore- would be allowed to assess the Institutional Trading Platform. 
  • The entity would have to list its securities on the recognised stock exchange within 30 days of getting approval from SEBI. 
  • Provisions relating to minimum public shareholding would not be applicable to entities listed on Institutional Trading Platform without making a public issue.

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