With an aim to boost the Startup Environment, BSE India has now launched a platform for new-age companies. Startups on BSE’s new platform will go live on 9th July.
Listings:
The BSE platform will facilitate the listing of the companies in sector such as :
IT , ITES , biotechnology and life science,
3D printing , space technology , e-commerce , hi-tech defence , drones , nano-technologies,
artificial intelligence , big data , virtual reality , e-gaming , exoskeleton , robotics , holographic technology ,
genetic engineering , variable computers , inside body computer technology and any other hi-tech company.
Criteria/Pre-requisites:
The pre-issue paid-up equity share Capital of the company should be a minimum of Rs. 1 crore.
Company should be in existence for a minimum period of 3 years on the date of filing the draft prospectus with BSE.
Startup should preferably have an investment by QIB investors/ angel Investors for a minimum period of 2 years at the time of filing of draft prospectus with BSE, and such aggregate investment should be at least Rs 1 crore.
A net worth that is positive.
No reference to NCLT under IBC, 2016.
No winding up petition that has been accepted by NCLT.
Benefits:
Will help expose these companies to different forms of capital and also bring better transparency in terms of valuation, corporate governance etc.
Will provide ease of access to Startups and these emerging companies for getting listed on a national exchange and giving a boost to the Indian Startup ecosystem in terms of funding, by lifting investor confidence.
The Startups need not go through the conventional initial public offering, as they get access to a credible class of investors on this platform by BSE, India.
The expectation is that this new platform- the BSE Startup Platform will be further strengthened to give startups much-deserved visibility.
One can expect better corporate governance standards and more transparency in fundraising and valuation.
Challenge:
The biggest challenge on the BSE, India platform is the lack of participation from the retail class of investors, who actually provide the momentum.