The Securities and Exchange Board of India is designing much easier listing norms for the tech start ups. Already SEBI has mad consultations with the tech CEOs on the matter and the new listing norms may accommodate the unique nature of the e-commerce firms.
India has the largest start up ecosystem in the world after the US, UK and China. NASSCOM’s 10000 start up programme has became a success facilitating a large number of startups during the last couple of years.
At present, the tech startups including that in the IT product development front and ecommerce firms are funded by number of venture capital funds, angel investors and private biggies. The new measure by SEBI to simplify regulations especially that related to post listing disclosure will attract tech firms to the primary market.
The new listing norms may exempt start ups to provide post listing disclosures about the use of IPO money. For tech companies, especially in the ecommerce sector, the firms are not investing in big plants, buildings etc and hence such mandatory disclosures are a dampener for the firms.
The matured start ups like the ecommerce giants Flipkart, Snapdeal etc were planning to make overseas listing given the difficulty in the Indian terrain.
At the same time, the domestic stock exchanges have also witnessed low listing business despite the surging stock indices. For them, the next opportunity to improve business is the potential IPOs by digital strartups. Hence, facilitating the start ups to come to the stock exchange will be a gain for the stock market as well as for the companies.