SEBI to allow start-ups, SMEs to list on stock exchanges without IPO | SupportBiz

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SEBI to allow start-ups, SMEs to list on stock exchanges without IPO

 
Tags: SEBI, IPO
After permitting listing of start-ups and SMEs in Institutional Trading platform (ITP) without having to make an initial public offer (IPO) in last June, the Securities and Exchange Board of India (SEBI) will now allow them to get listed on the stock exchanges as well, reports PTI.

SEBI will soon notify new norms on this regard which are expected to be disclosed within a week, sources said.

According to experts, SEBI’s permission to list start-ups and SMEs on the stock exchanges without an IPO will provide easier exit options to Angel Investors, Venture Capital Funds and Private Equities; as well as will enable better visibility, wider investor base and greater fund-raising capabilities to the above.

SEBI’s June notification said that, the companies eligible to be listed on ‘Institutional Trading Platform’ should be accessible for investment to the informed investors only. Therefore the minimum amount for trading or investment on the ITP would be Rs 10 lakh. Those companies should be exempted from the requirements of rule 19(2)(b) of SC(R)R 1957 under which companies had to offer up to 25 per cent of its shareholding to public through an offer document in order to get listed.