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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