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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Founders of multiple tech companies avoid being classified as promoters when they list but continue to call the shots. The regulator aims to fix that.
Editor's note: The Securities and Exchange Board of India wants founders with a 10% stake in their companies at the time of an IPO to classify themselves as promoters, according to a report in The Financial Express. The regulator’s move, if it takes effect, could have a bearing on a bunch of startups planning public issues of shares. With private equity investors holding the bulk of shares in many of them, founder stakes have come down to single digits. This will make it difficult to identify a promoter, and possibly delay the process. Also, there is no clarity on whether the new rule will allow clubbing together of founders to be counted as a single promoter. And, finally, can a founder opt out of being called a promoter if they pare their stake before an IPO? In 2019, faced with low founder/promoter stake in startups applying for IPOs, SEBI began drafting fresh rules. The rules allowed these startups to list as professionally managed companies, or PMCs, without anyone being classified as a promoter. It is under these rules that startups like Paytm, …
Founders of multiple tech companies avoid being classified as promoters when they list but continue to call the shots. The regulator aims to fix that.
Editor's note: The Securities and Exchange Board of India wants founders with a 10% stake in their companies at the time of an IPO to classify themselves as promoters, according to a report in The Financial Express. The regulator’s move, if it takes effect, could have a bearing on a bunch of startups planning public issues of shares. With private equity investors holding the bulk of shares in many of them, founder stakes have come down to single digits. This will make it difficult to identify a promoter, and possibly delay the process. Also, there is no clarity on whether the new rule will allow clubbing together of founders to be counted as a single promoter. And, finally, can a founder opt out of being called a promoter if they pare their stake before an IPO? In 2019, faced with low founder/promoter stake in startups applying for IPOs, SEBI began drafting fresh rules. The rules allowed these startups to list as professionally managed companies, or PMCs, without anyone being classified as a promoter. It is under these rules that startups like Paytm, …
Bistro may look like a response to Swiggy and Rapido’s 10-minute food delivery apps, but the similarities end at affordability—the playbooks are fundamentally different.
The Bengaluru-based contract manufacturer lands in legal hot water with the California-headquartered transformer startup over a trade secret dispute.
The Rs 250 SIP was launched last year by the former SEBI chairperson with one clear goal: financial inclusion. More than a year later, the much-hyped scheme doesn’t seem to have caught on with MF investors.
Bistro may look like a response to Swiggy and Rapido’s 10-minute food delivery apps, but the similarities end at affordability—the playbooks are fundamentally different.
The Bengaluru-based contract manufacturer lands in legal hot water with the California-headquartered transformer startup over a trade secret dispute.
The Rs 250 SIP was launched last year by the former SEBI chairperson with one clear goal: financial inclusion. More than a year later, the much-hyped scheme doesn’t seem to have caught on with MF investors.
