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sebi: Sebi proposes key changes to superior voting rights shares

Sebi proposes key changes to superior voting rights shares In the prospective issuer companies, the shareholding of promoters may be structured through either holding companies or family trusts or limited liability partnerships (LLPs). Synopsis Under Sebi rules, the definition of promoter and promoter group is very broad and can include a large set of relatives and entities. Investments and net-worths of such relatives and entities would also be considered for determining the collective net worth. Mumbai: India on Thursday sought to make it easier for technology entrepreneurs to list start-ups and new-age firms and still exercise a reasonable degree of control in the public companies, proposing key changes to rules that govern the allocation of superior voting rights (SR) shares.

Indian markets regulator to review superior voting rights framework

Indian markets regulator to review superior voting rights framework Birds rest on the logo of the Securities and Exchange Board of India (SEBI), REUTERS/Shailesh Andrade/Files July 2, 2021 The markets regulator on Thursday put out a consultation paper seeking comments on its superior voting rights (SR) framework after market participants highlighted several concerns. The Securities and Exchange Board of India (Sebi) introduced the framework in 2019 to enable technology startup founders who typically own small shares in their companies because raising large sums of capital is needed to scale up and results in the founders stake getting reduced substantially. The framework was aimed to allow founders of these tech startups to retain control of their companies after they started trading publicly.

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