NSE gears up for e-IPOs, start-ups

To ensure smooth implementation of new norms for e-IPOs and listing of start-ups, NSE today asked trading members to upgrade infrastructure and provide adequate training to concerned officers.
The move follows capital markets regulator Sebi issuing a new set of guidelines on e-IPOs as well as new regulations for listing of start-ups on domestic bourses.
In a circular, NSE asked its trading members "to ensure the IT systems/infrastructure at your end are suitably upgraded and adequate training and familiarisation is provided to the concerned officers so that no investor is put to any inconvenience."
Under the new norms for e-IPOs, the time taken for listing of companies has been reduced by half to six days.

Currently, it takes 12 days after the close of bidding in the Initial Public Offer (IPO) for a company to list on stock exchanges, thus keeping the investors' funds locked in for a longer period of time.
In addition, ASBA (Application Supported by Blocked Amount), which refers to an application mechanism for subscribing to IPO with the bid amount blocked in a bank account rather than that being debited, will be applicable to all kinds of investor category and all IPOs.

The shorter time period, which would come into effect from January 1, 2016, would also help reduce the costs associated with the public offering.

With regard to start-ups, the exchanges would have a separate institutional trading platform for listing of such companies.
The new norms are aimed at encouraging Indian entrepreneurs and their technology and other start-ups to remain within the country, rather than moving to overseas markets for funds.