SEBI is expected to notify the new regulations within a week for listing start-ups and SMEs that would provide easier exit options for angel investors, VC and PE funds
Market regulator Securities and Exchange Board of India (SEBI) will soon notify new norms for the listing of start-ups and small and medium enterprises on the stock exchanges without having to make an initial public offer (IPO).
Earlier in June, the SEBI board had approved the amendment of rules to permit the listing of start-ups and SMEs in institutional trading platform without an IPO.
According to reports, SEBI is expected to notify the new regulations within a week.
Lack of exit opportunities for investors and restricted access to new ones is a major problem faced by start-ups and SMEs.
The move is aimed at providing easier exit options for entities such as angel investors, venture capital (VC) funds and private equities (PE). Besides, the move will provide better visibility, wider investor base and greater fund-raising capabilities to such companies.
SEBI had said in June that the minimum amount for trading or investment on ITP would be Rs10 lakh. Such companies would also be exempted from the requirements of having to offer up to 25% of shareholding to public through an offer document in order to get listed.
MCA has received hundreds of comments on various draft rules, mainly on those related to CSR spending and managerial remuneration
The union government has extended the deadline till Thursday for providing feedback on the first set of draft norms for the new Companies Act.
In a release, the Ministry of Corporate Affairs (MCA) said, “The last date for submission of feedback/suggestions on the first phase of draft rules has been extended by two days, i.e., evening of 10 October 2013”.
MCA is in the process of framing norms for new legislation that replaces the nearly six-decade-old law governing companies in the country.
The deadline for providing comments on the first tranche — that covered 16 out of the 29 chapters of the Companies Act, 2013 — was to end on Tuesday. These draft norms were issued on 9th September.
Already, the Ministry has received hundreds of comments on various draft rules, mainly on those related to corporate social responsibility (CSR) spending and managerial remuneration, according to officials.
Among others, the first set covers rules for the board of directors, auditors, registration and incorporation of companies, revival of sick companies, financial accounts of corporates, National Company Law Tribunal and Appellate Tribunal.
The new legislation, that replaces the Companies Act, 1956, was approved by Parliament in July.
Godrej has bought 30% stake in B:blunt which is owned by Bollywood filmstar Farhan Akhtar’s wife, Adhuna and her brother Osh, for an undisclosed amount
Godrej Consumer Product Ltd (GCPL) said it signed an agreement to buy 30% stake in Bhabani Blunt Hair Dressing Private Ltd (B:blunt), a Mumbai based hair salon company having 17 outlets and four academies across the country. No financial details were given.
B:blunt is a joint venture of Adhuana Bhabhani Akhtar, wife of Bollywood celebrity Farhan Akhtar and her brother Osh Bhabhani. Earlier, Juice Saloon which started in 1998 changed its name to B:blunt in 2005 and launched 17 hair salon chain across Mumbai, New Delhi, Pune, Bangalore, Hyderabad, Indore and Dubai.
With the deal, Godrej has entered into beauty salon business, where it will face competition from Hindustan Unilever (HUL)’s Lakme Spa & Saloon, L’Oreal salon and Marico’s Kaya Skin Clinic.
On Tuesday, Godrej Consumer Products closed 4.25% down at Rs835.75 on the BSE, while the benchmark Sensex ended 0.44% up at 19,983.