BSE Forms Advisory Group To Fast-Track Alternate Fundraising Platform For Startups

The BSE has formed an advisory group to fast-track the development of its platform – BSE Hi-Tech – an alternate fund-raising platform for startup firms. SEBI had cleared the alternate fund-raising platform for startups in June this year.

BSE said in a statement “In order to develop BSE Hi-Tech, a platform where young fast growing companies can list and access capital from sophisticated investors, the Exchange has decided to form an advisory group

The 13-panel group, which held its first meeting, includes experts from the startup ecosystem, investors, merchant bankers and legal professionals who will advise BSE on the newly proposed framework on BSE Hi-Tech. The platform will be based on the new institutional trading platform norms announced by regulator SEBI in August 2015.

The advisory group will interact with various stakeholders including the ministry, SEBI, and industry associations. It will also help frame policies to create a robust platform.

The advisory group consists of startup professionals, investors, merchant bankers and legal professionals such as Ravi Gururaj, chairman – product council, Nasscom; lawyer Nishith Desai; and Shekhar Kirani, partner – Accel Partners.

In May, SEBI had roped in Infosys founder NR Narayana Murthy to head 18-member panel committee to advise on policy matters for the new regulatory framework for startups and alternative investment funds (AIFs). The move came at a time when SEBI had already announced its plans to relax listing norms to facilitate easy entry & exit of investors in startups.

The measures come in the wake of the tremendous growth witnessed by the Indian startup ecosystem in the recent years. Massive funding, a booming ecommerce market, evolving technology, hyper growth and consolidation activities, have fuelled the growth of the startup system. By providing an alternate listing platform to startup entrepreneurs, BSE Hi – Tech will be another shot in the arm for startups to reach out to potential investors and raise funds easily. The measure is aimed at making the environment more business friendly for startups when it comes to raising money.

According to the data available, more than $7 Bn has been invested in more than 600 startups, in India, in first three quarters of 2015. Many Indian startups are also going public this year. Just yesterday, Chennai-based match-making portal, Matrimony.com and anti-virus software maker, Quick Heal Technologies, have received the approval of SEBI to launch their initial public offers (IPOs), and could raise about INR 1000 Cr. Similarly, in October, Gujarat based Infibeam Incorporation became the first ecommerce company to receive approval from SEBI for raising money through its $69 Mn initial public offering.

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