Bombay Stock Exchange to launch new platform to list startups next month

This platform will facilitate the listing of companies in sectors like IT, ITES, bio-technology and life sciences, 3D printing, space technology and e-commerce.
BSE (File | Reuters)
BSE (File | Reuters)

NEW DELHI: To make stock market listing attractive for startups, leading stock exchange BSE has decided to launch a new platform next month to list the new-age companies.

This platform will facilitate the listing of companies in sectors like IT, ITES, bio-technology and life sciences, 3D printing, space technology and e-commerce.

Besides, the platform will aid in the listing of companies from hi-tech defence, drones, nanotechnologies, artificial intelligence, big data, virtual reality, e-gaming, robotics, genetic engineering, among other sectors.

In order to provide further incentive to startups, the exchange has announced BSE startup platform at its SME (small and medium enterprise) segment.

"We will launch the platform on July 9," an exchange official said.

Spelling out the criteria for the listing on the platform, the exchange said a company needs to have a pre-issue paid up equity share capital of a minimum of Rs 1 crore.

The company should be in existence for a minimum period of three years on the date of filing the draft prospectus with BSE.

Besides, it should have a positive net-worth.

"The companies should preferably have investment by the 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 said.

Further, the exchange said 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.

With regard to disclosures and migration to the main board, regulation applicable to BSE SME segment will be applicable to such firm.

Earlier this month, markets regulator Sebi had set up a panel that will look at ways to ease such listings as the existing institutional trading platform framework failed to gain "any traction".

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