Sebi seeks to relax norms of issue of shares with 'superior voting rights'

Move likely to give more flexibility to founders of new-age companies aiming to raise capital and taking their firms public

The Securities and Exchange Board of India (Sebi) has proposed to ease the framework governing issue of shares with superior voting rights (SR shares), a move that will give more flexibility to the founders of new-age companies when it comes to raising capital and taking their company public.

In a discussion paper issued on Thursday, Sebi has sought market feedback on three key areas in the existing framework that can be tweaked. These include the net worth requirement of the promoters, minimum holding period of SR shares and structures eligible for SR share issuances.

At present, SR shares can be