Indian Start-ups and Investors To Benefit From New IPO Rules
- India is easing IPO rules for start-ups in a bid to lure more domestic investors into the booming e-commerce community.
In a board meeting today, the Securities and Exchange Board of India (SEBI) announced that it would set up an alternative Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term with revised requirements for investment in start-ups, accoding to Reuters. The new rules would place less demands on investors and make it more attractive for Indian start-ups to list at home.
Foreign Capital Fuelling E-commerce
There are more than 3,100 start-ups in the country…The space is very vibrant.
The e-commerce industry in India is nothing new and shows no signs of slowing. Recent data by Bloomberg indicates that start-up activity is on the rise in this space, with both the number of deals and the amounts invested significantly rising since Q2 2014. Indeed, UBS AG predicts the e-commerce market to grow tenfold to $50 billion by 2020.
As U.K. Sinha, Chairman of SEBI, outlined, “There are more than 3,100 start-ups in the country…The space is very vibrant.”
Despite many large Indian e-commerce firms having acquired tech-savvy start-ups, most of the investment in local start-ups continues to come from offshore. Indeed, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates recently reported that Faircent, a P2P lender in the India market, secured its latest round of funding from abroad, raising $250,000 from Singapore-based M&S Partners.
Attractive New Framework
The new rules seek to make listing in India a more attractive fund-raising and investment option.
The new rules seek to make listing in India a more attractive fund-raising and investment option. Sinha said that “Start-ups and their investors have listed their pain points to us and we have tried to resolve them”.
To do so, SENI’s board outlined new rules linked to profitability, use of funds and valuation methodology. The lock-in period for investors in start-ups is now six months, down from three years for regular IPOs.
The minimum investment in start-ups will be set at 1 million rupees ($15,700), with institutional investors expected to hold at least 25% of the pre-issue capital of technology start-ups and 50% for some other categories of start-ups, according to Bloomberg.
“We are rethinking the whole framework to make it investor oriented,” said Srinivasan, a member of a SEBI’s panel on start-ups.
In a board meeting today, the Securities and Exchange Board of India (SEBI) announced that it would set up an alternative Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term with revised requirements for investment in start-ups, accoding to Reuters. The new rules would place less demands on investors and make it more attractive for Indian start-ups to list at home.
Foreign Capital Fuelling E-commerce
There are more than 3,100 start-ups in the country…The space is very vibrant.
The e-commerce industry in India is nothing new and shows no signs of slowing. Recent data by Bloomberg indicates that start-up activity is on the rise in this space, with both the number of deals and the amounts invested significantly rising since Q2 2014. Indeed, UBS AG predicts the e-commerce market to grow tenfold to $50 billion by 2020.
As U.K. Sinha, Chairman of SEBI, outlined, “There are more than 3,100 start-ups in the country…The space is very vibrant.”
Despite many large Indian e-commerce firms having acquired tech-savvy start-ups, most of the investment in local start-ups continues to come from offshore. Indeed, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates recently reported that Faircent, a P2P lender in the India market, secured its latest round of funding from abroad, raising $250,000 from Singapore-based M&S Partners.
Attractive New Framework
The new rules seek to make listing in India a more attractive fund-raising and investment option.
The new rules seek to make listing in India a more attractive fund-raising and investment option. Sinha said that “Start-ups and their investors have listed their pain points to us and we have tried to resolve them”.
To do so, SENI’s board outlined new rules linked to profitability, use of funds and valuation methodology. The lock-in period for investors in start-ups is now six months, down from three years for regular IPOs.
The minimum investment in start-ups will be set at 1 million rupees ($15,700), with institutional investors expected to hold at least 25% of the pre-issue capital of technology start-ups and 50% for some other categories of start-ups, according to Bloomberg.
“We are rethinking the whole framework to make it investor oriented,” said Srinivasan, a member of a SEBI’s panel on start-ups.