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.
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