BSE creates new division for listing of startups

To make stock market listing attractive for startups, leading stock exchange BSE has announced the creation of a new division within its SME segment to list new-age companies.

The 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 firms from hi-tech defence, drones, nano technologies, artificial intelligence, big data, virtual reality, e-gaming, robotics, genetic engineering, among other sectors.

"In order, to incentivise startup companies...the exchange is pleased to announce the creation of a new sub-segment within the existing SME (small and medium enterprise) segment," BSE said in a circular.

Spelling out the criteria for listing on the BSE startup platform, the exchange said the company should be registered as a startup with the Ministry of Micro, Small & Medium Enterprises or Department of Industrial Policy & Promotion.

In case the company is not registered as a start-up then its paid-up capital should be minimum Rs 1 crore.

Among other criteria, the company should be in existence for a minimum period of two years, besides, qualified institutional buyer (QIB) or angel investor or any other accredited investor should have invested in the firm for a minimum period of two years at the time of filing of draft prospectus with the BSE.

The firm should have positive net-worth and none of the promoter or directors of the company have been debarred by any regulatory agency.

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.

Earlier, the BSE had announced to launch startup platform on July 9 in its SME (small and medium enterprise) segment, however, later it had postpone the launch.