Startup India: Your fledgling venture can tap the capital markets now; BSE to float new platform on 9 July

New Delhi: To make stock market listing attractive for startups, leading stock exchange Bombay Stock Exchange (BSE) has decided to launch a new platform next month to list the new-age companies. This platform will facilitate the listing of companies in sectors like IT, ITES, bio-technology and life sciences, 3D printing, space technology and e-commerce.

Besides, the platform will aid in listing of companies from hi-tech defence, drones, nano technologies, artificial intelligence, big data, virtual reality, e-gaming, robotics, genetic engineering, among other sectors.

In order to provide further incentive to startups, the exchange has announced BSE startup platform at its SME (small and medium enterprise) segment.

"We will launch the platform on July 9," an exchange official said.

Spelling out the criteria for the listing on the platform, the exchange said a company needs to have a pre-issue paid up equity share capital of a minimum of Rs 1 crore.

The company should be in existence for a minimum period of three years on the date of filing the draft prospectus with BSE. Besides, it should have a positive net-worth.

Brokers watching stock movements. Representational image. Reuters.

Brokers watching stock movements. Representational image. Reuters.

"The companies should preferably have investment by qualified institutional buyer (QIB investors)/ angel investors for a minimum period of two years at the time of filing of draft prospectus with BSE and such aggregate investment should be at least Rs 1 crore," the exchange said.

Further, the exchange said the firm seeking to list on the platform should not have been referred to National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code and there should be no winding up petition against the company that has been accepted by NCLT.

With regard to disclosures and migration to the main board, regulation applicable to BSE SME segment will be applicable to such firm.

Earlier this month, markets regulator Sebi had set up a panel that will look at ways to ease such listings as the existing institutional trading platform framework failed to gain "any traction".


Updated Date: Jun 25, 2018 17:13 PM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See