Till now, start-ups of the country avoided listing in the Indian stock market and instead chose to do the same in foreign shores. Most of these foreign listing boards include the London’s Alternative Investment Market(AIM), New York’s Nasdaq, and Singapore’s SSX.
SEBI Chairman UK Sinha spent the last many weeks discussing with entrepreneurs on the problems start-ups face when listing which led to the formation of new regulatory laws to benefit such companies. SEBI hopes that this will help India compete better in global markets.
However, start-up founders have spoken out that it is actually something else which they require for the improvement of the ecosystem.
“ITP is a good step But the Indian environment chases only profitable growth. Internet companies are in the early growth phase. Their businesses are disruptive — like changing user buying and selling behaviour. They need to be looked at with different mindsets. “said Vijay Shekhar Sharma, founder, Paytm.
Indian Software Product Industry Roundtable (iSPIRIT) claims that India is home to 3,100 start-ups. It has been predicted that this number will increase to 11,000 in the next five years.
Goldman Sachs sees eCommerce accounting for 2.5% of the country’s Gross Domestic Product by 2030, growing 15 times to touch $300 billion, from $20 billion at present. Yet the current listing norms are unattractive for startups to list in India.
While notable global names like Tiger Global, Ant Financials and Softbank have been actively participating in many fundraising rounds here, the cycle will complete only when start-ups list locally offering wealth creation opportunities to Indian investors.
