Hotline: 1800 102 2007
X
Search Business Opportunities
2013-06-26

Start-ups, SMEs can list on bourses without IPO: SEBI

Market regulator Securities and Exchange Board of India (SEBI) on Tuesday allowed start-ups and small and medium enterprises (SMEs) to get listed on bourses without making an initial public offering, while new rules have been put in place for angel invest

Market regulator Securities and Exchange Board of India (SEBI) on Tuesday allowed start-ups and small and medium enterprises (SMEs) to get listed on bourses without making an initial public offering, while new rules have been put in place for angel investors.

To ensure that investments are genuine, angel investors would be allowed to put in their money in only firms incorporated in India and that are not more than three years old.

SEBI board during a meeting in Mumbai approved the amendments of rules to permit listing of start-ups and SMEs in institutional trading platform (ITP) without having to make an initial public offering.

Lack of exit opportunities for existing investors and restricted access to new investors is a major problem faced by start-ups and SMEs.

The proposal, said SEBI, has been approved with a “view to provide easier exit options for informed investors like  Angel Investors, VCFs and PE  etc. to provide better visibility, wider investor base and greater fund raising capabilities to such companies”.

According to SEBI, the minimum amount for trading or investment on the ITP will be Rs. 10 lakh. Such companies would also be exempted from the requirements of having to offer up to 25 per cent of its shareholding to public through an offer document in order to get listed.

“Therefore the listing can be done without an IPO and the expenses associated with it. While such companies are listed on the ITP they will not be permitted to raise capital, though they can continue to make private placements,” it said during the meeting.

SEBI also said that listing on ITP by start-ups and SMEs is expected to offer their existing investors better chances to find alternate buyers than if they search using their own network in the investment community.

“Standardised norms of entry for companies, eligibility criteria, continuous disclosure requirements, simplified exit rules and corporate governance norms will be prescribed,” said SEBI.

Related opportunities
  • Quick Service Restaurants
    Looking for your own lucrative business in ever growing fast..
    Locations looking for expansion New Delhi
    Establishment year 2009
    Franchising Launch Date 2012
    Investment size Rs. 10lac - 20lac
    Space required 200 - 800
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Rajouri New Delhi
  • Others Food Service
    About Us: Launched in 2015, YoMama is a chain of cafes..
    Locations looking for expansion Karnataka
    Establishment year 2015
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 350
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • Healthcare Products
    About Us: Fitnesstack is a premier brand for Fitness and Bodybuilding..
    Locations looking for expansion Haryana
    Establishment year 2013
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Faridabad Haryana
  • HR & Recruitment
    Coppergate - a specialist headhunting, Staffing & Education Company looking..
    Locations looking for expansion Maharashtra
    Establishment year 2007
    Franchising Launch Date 2008
    Investment size Rs. 50 K - 2lac
    Space required 01
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts