SEBI panel to facilitate easy listing for start-ups
Published: Jun 14, 2018
By TIOLCORPLAWS News Service
NEW DELHI , JUNE 14, 2018: To make stock market listing attractive for start-ups, regulator SEBI has set up a panel that would look at ways to ease such listings as the existing institutional trading platform framework failed to gain any traction.
The group would review the present institutional trading platform (ITP) framework in the current context as well as identify areas, if any, which require further changes. Besides, any other issue relevant to the framework might also be assessed, SEBI said in a release on Tuesday.
In 2015, the ITP framework was put in place in with a view to facilitate listing of new age companies in sectors like e-commerce, data analytics, bio-technology and other start-ups.
As that framework failed to gain any traction, SEBI said the group had been formed after discussions with various stakeholders.
Members of the group include representatives from the Indian Software Product Industry Round Table (iSPIRT), The Indus Entrepreneurs (TIE), the Indian Private Equity and Venture Capital Association (IVCA), law firms, merchant bankers, and stock exchanges.
The markets regulator had been working on ways to help bolster start-ups. In March, SEBI board approved doubling the investment limit by angel funds in venture capital undertakings to Rs 10 cr, a move that would help provide an impetus to early-stage start-ups.
Angel funds, a sub-category of alternative investment funds (AIFs), encourage entrepreneurship by financing small start-ups at a stage when they find it difficult to obtain capital from traditional sources of finance such as banks and financial institutions.
