Securities and Exchange Board of India (SEBI) is planning to relax rules of startup listing in India. This move provides top startups an opportunity for listing in the country. That is, soon major players like OLA, Flipkart, Paytm may get a chance to list their business in India.
According to reports, SEBI is likely to take the following steps as part of simplifying the listing rules:
- Giving promoters the flexibility to categorise themselves as ordinary shareholders
- Exempting promoters from the mandatory three-year lock-in period
- Free promoters from fiduciary responsibilities of a promoter
- Allowing private equity (PE) investors with a significant stake in a startup to declassify them as promoters of a company (since it attracts a lot of fiduciary responsibilities and disclosure requirements)
Moreover, India’s two top stock exchange platforms NSE and BSE are also in talks with SEBI to simplify the listing norms for startups and to introduce a new platform for facilitating the listing of tech startups.