BSE, IIT Alumni Council ink pact for listing of start-ups

Our Bureau Mumbai | Updated on July 13, 2020 Published on July 13, 2020

The alliance will help reduce listing time, complexity and cost for start-ups

The BSE has signed a memorandum of understanding with IIT Alumni Council to encourage listing of start-ups and develop ‘high investor depth’ in its start-ups platform.

The alliance will ensure entity transparency, improvement in governance, market discovery of share price, provide liquidity for private equity investors and enable retail participation.

IIT Alumni Council is the largest global body of alumni, students and faculty across all the 23 IITs with over 100 city chapters globally.

Ravi Sharma, President, IIT Alumni Council, said to enhance the efficiency of the listing process and increase access to investors pool for start-ups, the Council proposes to use artificial intelligence and other automation tools to reduce time, cost and efforts involved in the listing process.

Further, associated and volunteer managed funds will be encouraged to underwrite, act as anchor investors and market makers for the IPOs, he added.

The entry of big ticket investors like Mega Fund into the start-up listing space will lead to a paradigm change in the start-up ecosystem and its ability to access capital, said Sharma.

Ashishkumar Chauhan, Managing Director, BSE, said the partnership will enable a complete end-to-end ecosystem for the proposed social stock exchange.

The alliance will help reduce listing time, complexity and cost for SMEs and start-ups by streamlining, automating and standardising the documentation processes. Besides, Category-I merchant banks will be empanelled to help automate the listing process to reduce time and cost of listing on the start-up platform of the exchange.

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Published on July 13, 2020
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