In an attempt to push startup environment facilitating the listing of startups in different sectors IT, ITES, biotech, 3D printing, space tech, and e-commerce, BSE India is launching a platform for new-age companies from July 9.
The maiden platform will help in the listing of startups from other sectors too including defence, drones, nanotechnologies, virtual reality, big data, e-gaming, robotics, genetic engineering and more as informed by BSE officials.
There is a certain criterion that startups and SME’s in the above-mentioned sectors will have to fulfil for their listing in the world’s fastest exchange as claimed by BSE. Some of the mandatory conditions are:
- The company should 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 the BSE.
- It should preferably have investments by qualified institutional buyers (QIB investors)/angel investors for a minimum period of two years at the time of filing of the draft prospectus with the BSE.
- The company seeking listing should not have been referred to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code.
Earlier, The Securities and Exchange Board of India (SEBI) has constituted an expert committee to look into the existing Institutional Trading Platform framework (ITP) to suggest measures that could facilitate the listing of startups.
At the same time, SEBI is also examining the possibility of allowing unlisted Indian companies to directly list equity overseas while also allowing foreign companies to list directly on the Indian bourses.