Wednesday, 24 June 2015

Easier listing norms will benefit cos like us: Snapdeal

NEW DELHI: E-commerce major Snapdeal today said Sebi's move to relax regulations relating to listing on domestic stock exchanges will benefit "India-focused companies" like it in the long-run. 

Welcoming the market regulator's proposed plans to implement e-IPO and start-up specific listings platform, the city-based firm said it will provide "much needed access to funds for start-ups". 

"For us at Snapdeal, we are particularly pleased with this move considering that easing of listings norms will benefit India-focussed companies like ours in the long-run," a company spokesperson said. 

According to reports, Snapdeal was looking at American bourses for listing. In 2013, Snapdeal co-founder and chief executive officer Kunal Bahl had talked of a US listing without disclosing any deadline. 

Capital markets regulator Sebi today relaxed its regulations for companies to list and raise funds through a dedicated platform on domestic stock exchanges rather than going overseas. 

Under the new norms approved by Sebi's board today, the stock exchanges would have a separate institutional trading platform for listing of start-ups from the new age sectors, including e-commerce firms, while the minimum investment requirement would be Rs 10 lakh. 

For their listing, Sebi has relaxed the mandatory lock-in period for promoters and other pre-listing investors to six months, as against three years for other companies. 

Sebi Chairman U K Sinha said, "Indian start-up space is very vibrant and the country is ranked number five as far as start-ups are concerned. 

"More than 3,100 start-ups are there in the country and a large number of M&As have also happened." 

"However, most of these start-ups were thinking of listing outside... We have made a very special provision for them," Sinha added.

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