To boost listing of start-ups, Sebi on Thursday said it has suggested relaxation in norms.
Sebi has suggested reducing the period of holding of 25 per cent of pre-issue capital of the issuer company by eligible investors to one year from current requirement of two years.
The regulator has also proposed that there should be continuation of special rights, such as board seat and veto or affirmative voting rights, for existing institutional investors holding in excess of 10 per cent of capital.
Further, accredited investors' pre-issue shareholding should be considered for entire 25% of the pre-issue capital of the issuer company instead of present 10%.
Additionally, delisting may be considered if 75% of the total shareholding and voting rights are acquired against the present requirement of 90%.
Bottom line: Get ready to study some great startups. We might soon see some quality startups listing in the markets!