Startup lobby group Indiatech.org is in discussion with the government and regulators to allow local startups to list their services on Government e-marketplace or GeM.
The government-owned portal that is aiming to reach $25 billion GMV by 2021, facilitates online procurement of common use goods & services required by various government departments, organisations, and PSUs.
According to the lobby group’s newly appointed CEO Rameesh Kailasam, the listing of home-grown startups on GeM will make the process of a stock market listing easier and central and state departments can also make procurements from them.
Besides accessing new market opportunity, startups can leverage the platform and give a price advantage to the government department. Cab, hotel, and flight booking platforms have a better opportunity to serve GeM that may surpass e-commerce giants Flipkart and Amazon in terms of transactions within three years.
Further, Indiatech is planning to submit a recommendation paper to SEBI on easing the process of stock market listing within two weeks. The lobby gorup will pitch for relaxing the requirement of a minimum 20 per cent promoter holding for those doing an initial public offer (IPO).
Separately, the stock market regulator is also planning to relax rules for listing of startups in India. This can provide a flexibility to promoters to categorise themselves as ordinary shareholders and exempting them from the mandatory three-year lock-in period.
Startups in the field of e-commerce, data analytics, and biotechnology are likely to get exemptions to raise funds and get their shares traded on stock exchanges. SEBI is also considering to rename ‘Institutional Trading Platform’ that was created for such listings as ‘Innovators Growth Platform’.
Earlier Indiatech had supported (SEBI)-appointed committee that proposed to allow companies to sell shares with differential voting rights.
The development was reported by TOI.