Within few weeks after Indian market regulator, Securities and Exchange Board of India (SEBI), has made a number of relaxations for startups in emerging tech sectors like e-commerce, data analytics and biotechnology, among others, more than a dozen tech startups could go public in fiscal 2020 to tap the capital market, reported Business Line.
SEBI, which has just renamed the trading platform for startups as ‘Innovators Growth Platform’, is likely to issue the final and detailed listing guidelines for startups on January 20.
According to the report, some 15 tech startups from different segments have shown interest in getting listed and have approached global entrepreneurship organisation TiE’s Mumbai chapter to hand-hold them with the listing process.
SEBI will share the names of some of these startups only after it comes out with the final guidelines in January.
Moreover, SEBI is also planning a road-show in this regard soon.
Nishar, who, as TiE Mumbai President, has been following up with SEBI, said that in framing the guidelines, the market regulator has considered almost all the proposals by the start-up and investor community.
India is seeing a large number of IPOs on SME exchanges. In May this year, in a milestone achievement for Indian startup ecosystem, Delhi-based E2E Networks, which is a largely bootstrapped startup, had raised ₹22 Crore by getting listed on NSE Emerge, the stock exchange’s platform for small and medium businesses (SMB) by National Stock Exchange (NSE).
Besides allowing private equity investors an exit option, listing also enhances the involvement of savvy investors, giving small investors the much needed confidence to participate in this upcoming asset class — startups.