In our previous story we explained that how market regulator Securities and Exchange Board of India (Sebi) has allowed startups to list on the small and medium enterprises (SME) platform of the stock exchanges as an opportunity to raise capital apart from traditional funding routes such as Venture Capital, private equity and angel investment.
Now in a latest development, the Bombay Stock Exchange (BSE) is on verge to launch a new platform for startups and SMEs to get listed, which would begin from July 9 this year.
The platform will facilitate listing of companies from IT, ITeS, biotechnology and life science, 3D printing, space technology, e-commerce, Hi-tech defence, drones, nano technology, artificial intelligence, big data, enhance/virtual reality, e-gaming, exoskeleton, robotics, holographic technology, genetic engineering, variable computers inside body computer technology and any other hi-tech sectors.
In a circular, the stock exchange said, “To provide further incentive to companies which are ‘startups’ in sectors like IT, ITeS, biotechnology and life sciences, the exchange is pleased to announce that the BSE Startup Platform has been enabled in the BSE SME Segment.”
The criteria for listing on “BSE Startup Platform” is as follows:
- The pre issue paid up Equity share Capital of the company should be minimum of Rs. 1 crore.
- The company should be in existence for a minimum period of 3 years on the date of filing the draft prospectus with BSE
- There should preferably have investment by QIB investors (as defined under SEBI ICDR Regulations, 2009) / Angel Investors for a minimum period of 2 years at the time of filing of draft prospectus with BSE and such aggregate investment should be at least Rs. 1 crore
- The company should have positive net-worth
- The Company should not have been referred to National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code, 2016
- There should be no winding up petition against the company that has been accepted by the National Company Law Tribunal (NCLT)
The companies listing on BSE Startup Platform with the above mentioned criteria will follow all the other conditions applicable for listing of SME Companies under Chapter XB of “SEBI (ICDR) Regulations, 2009”, relating to disclosures, migration to main Board, etc.
It may be recalled that last month, E2E Networks Ltd, which is largely a bootstrapped startup that counts Blume Ventures as one of its few major investors, raised about ₹22 Crore by listing on SME platform of NSE, NSE Emerge.