SEBI might be trying to mimic Nasdaq's act through the IGP. The American exchange was active in aiding tech startups. These startups are Google, Fb, Apple, Amazon, and Netflix. These aim to grow into the beasts they are now. Online travel sites Make My Trip and Yatra were able to list on the Nasdaq a few years ago. And this is because of the US's pro-tech plans. Even now, ReNew Power and Grofers are working to list on the New York Stock Exchange via a SPAC.
Other firms, such as Zomato, Delhivery, and Nykaa, are preparing IPOs. And SEBI, including Nasdaq, has put in steps to make it easier for startups to access the Indian market. All are hoping that the IGP will one day become India's Nasdaq. The first two-year retention period for pre-issue capital is now over. This move would allow startups to make an open grant to fit founders. These are the feature handy to firms listed on the BSE and NSE.
The SEBI has made a variety of changes, mentioned below. It requires startups planning an IPO to allow up to 60% of the problem size to other parties. And this too with a 30-day lock-in limit on those safeties. And that's because an issuer bureau is now banned from making open grants.
Now an investor's pre-issue shareholding will increase to 25% of the pre-issue capital. It has unanimously approved Differential Voting Rights for publicly traded firms. Brands whose promoters can manage the firm will sell shares. And they will resign ownership of the firm using contrast Voting Rights.
The new bylaw would allow profitable startups to consider a local listing. Especially those that are already entering public markets and reaping growth are lucky. Yet, there is already a long way to go.
''While it is a step in the right path, we are still a long way behind the US stock exchanges. We need a system for finding firms that could still be losing revenue,'' said Singhal.