Startup listing norms soon; need to retain them in India: Sebi

Says the regulator will soon issue norms for electronic IPOs, which will make it much easier for investors from across the country to invest in public offers

Asking technology startups founded by Indians to remain within the country, Sebi Chairman U K Sinha has promised an easier set of regulations for them to get listed and raise funds in the domestic stock market.

"We are going to take a decision very soon in this regard. We are looking into how to make it easier for them to raise money," Sinha said.

The Securities and Exchange Board of India (Sebi) Chairman also said that the regulator would soon issue norms for electronic IPOs, which would make it much easier for investors from across the country to invest in public offers.

On startups, Sinha said: "What is happening today is most of these startups, who have been reasonably successful, they are getting attracted to the New York Stock Exchange or Singapore Stock Exchange.

"They do not want to get listed here for varieties of reasons. They are getting attracted to foreign markets. Our effort is to provide a mechanism that they get listed in India itself, for the benefit of the country and for the benefit that the country's startups remain within the country."

"That is our aim and very soon we are going to take a call," the Sebi chief said here at a seminar.

Addressing the students of the Banaras Hindu University, Sinha said there must be many budding entrepreneurs at the BHU "who do not want to join a job but have got some good ideas to start their own business and startups".

Sinha also said Sebi has made it easier for the Small and Medium Enterprises (SMEs) to raise money from capital markets.

"SMEs are primarily dependent on bank loans today and we know that banks have their own limitations.

"We have created separate platforms for SMEs at the two top exchanges BSE and NSE. We have balanced the requirement of safeguarding the investors and also facilitating the fund requirement of the SMEs.

"95 SMEs have got listed on the two stock exchanges and their total market capitalisation is more than Rs 7,200 crore.

"If you look at the amount they have raised and if we go by the price at the time of their listing, then the market cap of these companies have more than doubled in just about two years time. So, these SMEs have also gained and the investors have also gained," Sinha said.

The Sebi chief further said that the regulator, the exchanges and the Indian Venture Capital Association were going to various parts of the country to invite SMEs.

"We have gone to Coimbatore, Rajkot, Ahmedabad, Chandigarh and Jamshedpur, among others. We intend to focus in UP also so that we can also create awareness among the SMEs on how can they raise money from the capital markets," he said.

For the primary market, Sinha said, Sebi would soon start electronic IPO, which would make it easier for the investors to put their money in the initial public offers.

"So like the secondary market, investors from all over the country can benefit from the secondary market network that is our next step and we are going to implement that very soon," he said.