Its very interesting to see SEBI work closely with these startups to understand the way “Listing” has to evolve, on par with countries like the US, UK and Singapore. The key here is to understand the fact that, the way and the duration over which revenues and profits are made by most of the startups today (especially the technology ones), in India and around the world, is different than in conventional businesses. And so the Listing requirements and policies also need to change accordingly.
Some of the key updates made to the policy include:
- A new Listing platform
- No more small investors
- Profits do not matter the most, anymore
- “Promoter” vs “Founder”
Aparna Ghosh from Yourstory.com has summarised the changes here: http://yourstory.com/2015/04/sebi-regulations-for-startups/
Image courtesy: Yourstory.com