From July 9, 2018 BSE is planning to launch a platform for startup listing in BSE for IT, ITeS, biotechnology and life science, 3D printing, space technology, e-commerce, Hi-tech defence, drones, nanotechnology, artificial intelligence, big data, virtual reality, e-gaming, exoskeleton, robotics, holographic technology, genetic engineering, and any other hi-tech sectors. This Initiative is taken by the Bse To provide incentives to companies that are working as a startup in these sectors.
This Initiative will be launched by the Bse In Order to give Boost to the startup ecosystem existing in India. It will also list hi-tech defense, drones, and nanotechnology companies.
What is Eligibility criteria for Listing in a new platform of Bombay Stock exchange?
- To become eligible for startup listing should have previously issued equity paid-up capital of Rs 1 Crore.
- Startup company should be in existence for 3 years from the date of filing a draft prospectus.
- The company should have funding secured for 2 years by the qualified institutional buyer or angel investor at the time of filling draft prospects with BSE.
- The Startup Company should not be in the National Company Law Tribunal, Insolvency and bankruptcy code or no winding up petition should be there with the National Company Law Tribunal.
- The Startup company should also have positive net worth and it should also follow all the other rules and regulation given in SEBI regulations.
Benefits of Startup Listing in Bse
- The eligible startup will not find it difficult to raise capital to fund their new projects, expand their business operations and for day to day business activities etc.
- Startup Listing on Bse will enhance the growth of sme and Startup and Also will provide them tax benefits under government schemes. As equity Financing provides growth opportunities.
- The Startup that is listed in Bse Will get huge media attention as newspapers and tv channels will pay more attention towards them if their share prices increase.
- If a Startup is Listed on Bse And is doing very well then it can attract more venture capital and finance as a venture capitalist and Angel investors will find it to be suitable investment option.
Conclusion
To conclude this article I would like to say is that Launching a platform for Startup Listing is a good step towards enhancing the growth of startup sector in India. The listing will ensure that the startup will not find it difficult to fulfill its fund and finance requirements and it will also help it to survive for long-term and avoid being bankrupt.