The Securities and Exchange Board of India today said that it will finalise norms for start-ups by June which will incentivise them to list within the country.

The capital markets regulator said that it expects a revival in the primary markets over the next 6-9 months.

“SEBI plans to come out with the discussion paper and set to come out with the regulations for start-up companies by June to allow such companies to list within the country. Many new technology companies have several issues and are exploring overseas listing,” SEBI Chairman U K Sinha said at the sixth Capital Markets Summit organised by CII here.

“We need to carve out certain set of rules. We may provide them relaxation in profitability and objects of the issues as these companies work on specific business model,” he said.

On the primary market, Sinha said that in spite of the formation of new government and a great budget, it continues to be subdued. In the 11 months of FY’15, only Rs 1,500 crore has been raised and the pipeline is not strong at the moment, he added.

When the country is projected to grow at 7 per cent and foreign portfolio investment touched record $46-billion mark, why primary market is subdued, he asked, seeking suggestions from industry to revive it.

However, the retail investors have started returning to the market as lakhs of new demat accounts have been opened.

SEBI is also considering issuing new regulations for municipal bonds issues and discussing with RBI the proposal to set up India’s first International Financial Services Centre (IFSC) in Gujarat’s GIFT City.

To deepen the capital markets, SEBI has also pitched for allowing investment of pension money into various securities instruments and to create an enabling environment for REITs to flourish.

Related Topics
comment COMMENT NOW