Indian stock exchange in Mumbai, the Bombay Stock Exchange (BSE) or BSE Ltd, has just announced the creation of a new division withi BSE SME, its SME segment, to list the new-age companies and thereby making stock market listing attractive for startups in the country.
The startup listing platform, which was scheduled for in July but postponed, has now finally launched and will facilitate the listing of companies in sectors like IT, ITeS, biotechnology and life sciences, 3D printing, space technology and e-commerce. The platform will also aid in listing of firms from hi-tech defence, drones, nano technologies, artificial intelligence, big data, virtual reality, e-gaming, robotics, genetic engineering, among other sectors.
“In order, to incentivize startup companies…the exchange is pleased to announce the creation of a new sub-segment within the existing SME (small and medium enterprise) segment,” BSE said in a circular.
In eligibility criteria for a startup to list on the platform, the BSE said that the company should be registered as a startup with the Ministry of Micro, Small & Medium Enterprises or Department of Industrial Policy & Promotion. In case the company is not registered as a startup, then its paid-up capital should be minimum ₹1 crore. The company should be in existence for a minimum period of two years, besides qualified institutional buyer (QIB) or angel investor or any other accredited investor should have invested in the firm for a minimum period of two years at the time of filing of the draft prospectus with the BSE.
The firm should have positive net-worth and none of the promoters or directors of the startup should have been debarred by any regulatory agency.
Further, the exchange said, the firm seeking to list on the platform should not have been referred to National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code and there should be no winding up petition against the company that has been accepted by NCLT.
Source – LiveMint.com