Sebi proposes to tweak several rules to encourage startups to go public
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The regulator has proposed that the compulsory shareholding period before listing for investors owning 25% or higher stake be halved to one year.
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The Securities and Exchange Board of India (Sebi) has proposed to tweak several rules to encourage startups to go public and list on the so-called Innovators Growth Platform.
The regulator has proposed that the compulsory shareholding period before listing for investors owning 25% or higher stake be halved to one year. It has also suggested raising the open offer trigger for investment deals, as well as recommended allocation of a higher percentage of shares to anchor investors during public issues and special rights to promoters and existing institutional investors.
Sebi proposes listing rule tweaks for startups
SECTIONS
Share
Synopsis
The regulator has proposed that the compulsory shareholding period before listing for investors owning 25% or higher stake be halved to one year.
Agencies
The Securities and Exchange Board of India (Sebi) has proposed to tweak several rules to encourage startups to go public and list on the so-called Innovators Growth Platform.
The regulator has proposed that the compulsory shareholding period before listing for investors owning 25% or higher stake be halved to one year. It has also suggested raising the open offer trigger for investment deals, as well as recommended allocation of a higher percentage of shares to anchor investors during public issues and special rights to promoters and existing institutional investors.
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Sebi proposes relaxing norms for listing start-ups
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Seeking to boost listing of start-ups, markets watchdog Sebi on Monday proposed a slew of relaxations to norms, including reducing holding period for pre-issue capital, providing differential voting rights to promoters and allowing discretionary allotment to all eligible investors.
The changes have been proposed to the framework for listing on the Innovators Growth Platform (IGP). Other proposals include retaining superior voting rights for existing institutional investors holding over 10 per cent of the capital, and easing delisting requirements.
Issuing a consultation paper to review the IGP framework, Sebi has suggested reducing the period of holding of 25 per cent of pre-issue capital of the issuer company by eligible investors to one year from current requirement of two years.