Startup listing norms soon; need to retain them in India: Sebi
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".
‘Right disclosures must for listed companies’
In a stern warning to the companies making wrong disclosures to mislead investors, Sebi's Chairman U K Sinha has said that the regulator and the exchanges are keeping a strict vigil and the violators would not be spared.
"The short point I want to make is that if you are investing somewhere, you should rest assured that Sebi and the exchanges are looking into the corporate governance practices of the company very seriously," Sinha said. Addressing a seminar on financial education and investor awareness here, the Sebi chief said that an investor looks at various parameters before making an investment decision.
These parameters could be the performance of our economy, the performance of a sector and the performance of the particular company, he said. "But there is one element in the minds of many people that whatever we hear from the company, including the results they announce. The question that comes in the mind of the investor is are these announcements by the companies reliable? Can investors trust them?
"That brings me to the question of corporate governance. You will be happy to know that some very good measures have been taken by us and the government, including the landmark Companies Act and the measures taken by Sebi on corporate governance.”
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