In order to give the startup ecosystem a boost and make the stock market more attractive to startups, India’s leading stock exchange institution BSE will be launching a BSE Startup Platform enabling new-age companies to list themselves, starting from July 9th.
A report quoted the BSE circular saying, “To provide further incentive to companies which are ‘startups’ in sectors like IT, ITeS, biotechnology and life sciences, the exchange is pleased to announce that the BSE Startup Platform has been enabled in the BSE SME Segment.”
The platform will facilitate companies across sectors from IT, ITeS, biotechnology and life science, 3D printing, space technology, e-commerce, Hi-tech defence, drones, nano technology, artificial intelligence (AI), big data, enhance/virtual reality, e-gaming, exoskeleton, robotics, holographic technology, genetic engineering, variable computers inside body computer technology, e-commerce and more.
For startups to be eligible in the BSE Startup Platform, a company needs to have a pre-issue paid up equity share capital of a minimum of Rs. 1 crore. In addition, the company needs to be in existence for at least a period of three years on the date of filing the draft prospectus with BSE and it should also have a positive networth.
The exchange also said that the firm/startup should not have been referred as under Insolvency and Bankruptcy Code, 2016 and no winding up petition against it must have been accepted by the National Company Law Tribunal (NCLT).
Firms further looking to disclose and migrate to the main board could do so by regulations applicable to BSE SME segment.
Sebi had also set up a panel to look into ways to ease such listings since the existing trading platform hadn’t manage to gain any traction.