Indian Startups : Bombay Stock Exchange create new division for listing startups

New Delhi: To make stock market listing attractive for startups, BSE Ltd today announced the creation of a new division within its SME segment to list the new-age companies. The startup listing platform will facilitate the listing of companies in sectors like IT, ITeS, biotechnology and life sciences, 3D printing, space technology and e-commerce. The platform will also aid in listing of firms from hi-tech defence, drones, nano technologies, artificial intelligence, big data, virtual reality, e-gaming, robotics, genetic engineering, among other sectors.

“In order, to incentivize startup companies…the exchange is pleased to announce the creation of a new sub-segment within the existing SME (small and medium enterprise) segment,” BSE said in a circular.

Spelling out the startup listing norms, BSE said the company should be registered as a startup with the Ministry of Micro, Small & Medium Enterprises or Department of Industrial Policy & Promotion. In case the company is not registered as a startup, then its paid-up capital should be minimum ₹1 crore. The company should be in existence for a minimum period of two years, besides qualified institutional buyer (QIB) or angel investor or any other accredited investor should have invested in the firm for a minimum period of two years at the time of filing of the draft prospectus with the BSE.

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The firm should have positive net-worth and none of the promoters or directors of the startup should have been debarred by any regulatory agency.

Further, the exchange said, the firm seeking to list on the platform should not have been referred to National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code and there should be no winding up petition against the company that has been accepted by NCLT.

Earlier, the BSE had announced to launch startup platform on 9 July in its SME (small and medium enterprise) segment, however, later it had postpone the launch.