Markets

15 start-ups ‘interested to list’ as SEBI relaxes norms

Priyanka Pani Mumbai | Updated on December 25, 2018 Published on December 25, 2018

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More than a dozen tech start-ups could go public in fiscal 2020, thanks to SEBI relaxing norms to help them tap the capital market. Listing also gives private equity investors an exit option.

The market regulator is expected to issue the final and detailed guidelines on January 20, post which start-ups can begin the listing process. Some 15 tech start-ups across segments have already shown interest in getting listed and have approached global entrepreneurship organisation TiE’s Mumbai chapter to hand-hold them with the listing process.

Atul Nishar, Chairman of IT firm Hexaware and President of TiE Mumbai, told BusinessLine: “About 15 start-ups have shown interest. Once SEBI comes out with the final guidelines in January, we will be able to share the names of a few start-ups. We are also planning a road-show in this regard soon.”

Nishar, who, as TiE Mumbai President, has been following up with SEBI, said that in framing the guidelines, the market regulator has considered almost all the proposals by the start-up and investor community.

“India is seeing a large number of IPOs on SME exchanges. Such initiatives enhance the involvement of savvy investors, giving small investors the much needed confidence to participate in this upcoming asset class — start-ups,” said Sunil Goyal, Managing Director of YourNest Venture Fund.

New norms

In 2015, SEBI first came out with guidelines to help the new age companies raise equity on its ‘Institutional Trading Platform’ (ITP). However, not a single start-up has listed so far. SEBI has now renamed the platform ‘Innovator Growth Platform’ (IGP) and also relaxed the norms. Under the new norms, a start-up, to be eligible for listing, should be using intensive technology, intellectual property, data analytics, bio-technology and nano-technology to provide products or services.

“This brings in a lot of enthusiasm and confidence among the investor community as it wants to be associated with new age technology companies,” Nishar said. He welcomed the new provision that allows start-ups listed on the IGP to move to the main platform after one year of listing, compared to three years earlier.

Published on December 25, 2018
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