Sebi has notified new norms for listing of start-ups and smes on stock exchanges without having to make an initial public offering.
The Securities and Exchange Board of India has made amendments of rules to permit listing of start-ups and SMEs on the Institutional Trading platform (ITP) without having to make an IPO.
Lack of exit opportunities for existing investors and restricted access to new investors is a major problem faced by start-ups and SMEs.
In a circular dated October 8, Sebi said the minimum amount for trading or investment on the ITP would be R10 lakh. The move is aimed at providing easier exit options for entities such as angel investors, venture capital funds and private equities.