In order to remain relevant to the masses, you will have to change with the changing times. The Securities and Exchange Board of India (SEBI) seems to have become a recent follower of this philosophy and has recently said that it is ready to make start-up listing platform more attractive by considering suggestions for possible changes in the norms for such companies. The board is pitching for an Aadhaar-enabled verification in place of an in-person verification.

In addition to this, SEBI will soon also have a new Central Know Your Customer (CKYC) mechanism in place, which will be able to provide common and one-time KYC for all financial market intermediaries, said SEBI Chairman U K Sinha in a recent statement.

According to industry experts, the one thing that could have really triggered SEBI to consider changes in the startup listing platform is the fact that the Institutional Trading Platform (ITP) is yet to see any start-up listing ever since an easier disclosure requirements and set of compliance was notified two year ago, in August 2015.

These norms were brought into action so as to encourage the Indian youth and talent to remain within the country and make use of their skills and talent here for the better of the country as well as themselves rather than jet setting to a foreign land for funds.

Speaking at the 11th Digital India summit, Sinha said that they had made a clear framework for start-ups, but unfortunately, despite that, not even a single start-up got listed. He added," If anything is required from our side, Sebi is willing to listen to your (start-up industry) problem and make changes."

He also said that the Board has in fact already begun its legwork and started discussing with the industry regarding the listing of start-ups, what is the problem they have been facing, whether its the state of the economy or any other thing. According to him, if the Board finds any useful suggestion and feedback, it will surely work on it and try incorporating it to make things better for everyone.

In fact, for listing, the Board has already relaxed the mandatory lock-in period it had for promoters and other pre-listing investors to six months as against the three years period it has for other companies. Not only this, SEBI has also gone ahead and relaxed its disclosure requirements for these companies.

Sinha believes that this one KYC is good enough for the entire financial system, and there will be no need of several KYCs by different market intermediaries.

He also said that the new system should be Aadhaar-enabled and an in-person verification should not be required as the biometric system would be more than enough to solve the purpose.

Prior to this, SEBI had made a written appeal to the Indian government, seeking major changes in the design of the newly-implemented CKYC process.

The Central Registry of Secularisation and Asset Reconstruction and Security Interest of India (Cersai), which is an online registry promoted by the government, has been given the responsibility to execute the new process.

SEBI has implemented a common KYC for the entire securities market through the KRA system since the year 2012.

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