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NSE, SEBI in talks to eradicate startup listing norms


The National Stock Exchange (NSE) is in advance talks with Securities and Exchange Board of India (SEBI) to remove some of the startup listing norms for making the ecosystem more attractive.

NSE managing director and chief executive Vikram Limaye, however, did not mention the date when the changes will be relaxed.

But, he outlined that the domestic investors over the years have increased who have invested a lot of funds in the startup ecosystem, reported Mint.

Meanwhile, investors are still doubtful whether NSE’s renewed efforts to promote the startup platform would lead to a significant increase in offerings.

NSE has been pitching public markets to startups for several years. It also launched a special segment for the startup ecosystem — Emerge ITP (Institutional Trading Platform).

But, both the segments have listed out a few number of startups so far.

Launched in December 2013, NSE’s Emerge ITP allows startups to list with or without an initial public offering (IPO). The platform connects growing businesses to a pool of sophisticated investors while offering a wide variety of exciting investment opportunities to the investors.

Also Read: SEBI to fix guidelines for crowdfunding channels soon

According to guidelines, companies looking to list on Emerge ITP without an IPO should not have been incorporated for more than 10 years and have revenues of less than Rs 100 crore and paid up capital of less than Rs 25 crore. So far, only 11 firms have been listed on the platform.

Whereas NSE’s Emerge, which was launched in 2012 offers opportunities to investors to invest in SMEs with exciting growth plans and innovative business.

Till date, 44 firms have been listed out on the platform which have raised more than Rs 300 to 400 crore funds.

To revive startup listing platform, which has struggled to generate interest, NSE is working hard to ease listing norms at an earliest.

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