For startups, BSE to launch new listing platform next month
The BSE stated that 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.
In a bid to provide incentive and to make stock market listing attractive for startups, BSE has decided to launch a new platform from next month to list the new-age companies. The platform will facilitate the listing of firms in sectors like IT, ITES, bio-technology and life sciences, 3D printing, space technology and e-commerce, said a PTI report.
The platform will reportedly aid in listing of companies from hi-tech defence, drones, nano technologies, artificial intelligence, big data, virtual reality, e-gaming, robotics, genetic engineering, among other sectors.
The leading stock exchange has announced BSE startup platform at its small and medium enterprise (SME) segment. "We will launch the platform on July 9," an exchange official told PTI.
The exchange further stated that a company needs to have a pre-issue paid up equity share capital of a minimum of Rs 1 crore, adding that the new-age firm should be in existence for a minimum period of three years on the date of filing the draft prospectus with BSE, besides having a positive net-worth.
"The companies should preferably have investment by qualified institutional buyer (QIB investors)/ angel investors for a minimum period of two years at the time of filing of draft prospectus with BSE and such aggregate investment should be at least Rs 1 crore," the exchange reportedly stated.
Further, the BSE stated that 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.
Further, the exchange elaborated that with regard to disclosures and migration to the main board, regulation applicable to BSE SME segment will be applicable to such firm.
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Earlier this month, markets regulator Sebi had reportedly formed a committee to look at ways to ease such listings as the existing institutional trading platform framework failed to gain "any traction".