• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Manifest Learning Academy
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
JournalsOfIndia
No Result
View All Result
Home Economy

Sebi’s new rules on startups, delisting, ESG

March 26, 2021
in Economy
Reading Time: 3 mins read
0
Sebi’s new rules on startups, delisting, ESG
137
VIEWS
Share on WhatsAppShare on TelegramShare on Facebook
image_pdfMake PDF

In News: Recently, Securities and Exchange Board of India (SEBI) has announced key changes in the rules for listing of startups.

About SEBI New Rules on startups, delisting, ESG

Retail investors to get access to institutional investors meets

  • SEBI made it mandatory for the companies to provide the audio and video recordings of all meetings on its website within 24 hours or before the next trading day.
  • Also written transcripts of the meetings will also be made available within five working days.
  • This is an important move for retail investors as companies are known to share important developments and outlook with the deep-pocketed institutional investors .

Encouraging startups 

  • SEBI reduced the holding period for pre-issue capital from the existing two years to one year while allowing such companies to make a discretionary allotment to eligible investors—a facility available to companies that list on BSE and NSE. 
  • Startups offer their investors (private equity, venture capitalists, angel investors etc) a board seat or certain special rights like veto power or affirmative voting rights as part of the funding arrangement and Sebi has allowed such rights to be continued for such investors if they hold over 10 percent stake.
  • These decisions are expected to encourage start-ups to list on Indian exchanges. 
  • SEBI approved several changes to the listing rules on the Innovators Growth Platform, including reducing from two years to one the time early-stage investors need to hold 25% of pre-issue capital, and allowing IPO-bound startups to allocate up to 60% of the issue size to any eligible investor with a lock-in of 30 days on such shares.
  • SEBI relaxed the threshold trigger for open offers from the existing 25% to 49% for startups, barring situations where there is a change in management control of the target company.

Enhanced focus on Environmental, social, and governance (ESG) parameters

  • SEBI has introduced a concept called ‘Business Responsibility and Sustainability Report’ for the top 1,000 listed companies of the country. 
  • Report will emphasise on disclosures related to climate and social related issues of the company, which would help the investor community assess the firm’s sustainability-related risks and opportunities.
  • This is an important move considering the fact that the recent past has seen quite a few Indian mutual fund house launch ESG funds even as such form of sustainable investing has grown exponentially across some of the largest markets.

Delisting of Startups.

  • SEBI eased norms for the delisting of startups.
  • Delisting will be considered successful if the acquirer or promoter shareholding, along with the shares tendered and accepted, reaches 75% of the total issued shares of that class, and at least 50% of the public shareholding is tendered and accepted. 
  • Reverse book-building mechanisms will not be applicable to startups seeking to go private. 
  • Independent directors will have to give their “reasoned recommendations” on the delisting proposal while the promoter or acquirer entity will have to disclose its intention to delist the company through an initial public announcement.

About SEBI

  • SEBI is a statutory regulatory body established by the Government of India to regulate the securities market in India and protect the interests of investors in securities.
  • The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
  • SEBI has the power to regulate and perform functions such as:
    • check the books of accounts of stock exchanges and call for periodical returns
    • approve by-laws of stock exchanges
    • inspect the books of financial intermediaries such as banks
    • compel certain companies to get listed on one or more stock exchanges
    • handle the registration of brokers
  • The organization was created to meet the requirements of the following three groups:
    • Issuers: SEBI works towards providing a marketplace to the investors where they can efficiently and fairly raise their funds
    • Intermediaries: SEBI works towards providing a professional and competitive market to the intermediaries 

Investors: SEBI protects and supplies accurate information to investors

Additional Link: https://journalsofindia.com/sebi

image_pdfMake PDF
Source: Money Control and Business Standard
Tags: News PaperPrelims

Related Posts

World Economic Situation & Prospects report-2023

World Economic Situation & Prospects report-2023

February 3, 2023
What is a Unity mall?

What is a Unity mall?

February 2, 2023
High Net worth Individuals (HNIs)

High Net worth Individuals (HNIs)

February 2, 2023
SUMMARY OF THE INDIAN ECONOMIC SURVEY 2022-23

SUMMARY OF THE INDIAN ECONOMIC SURVEY 2022-23

February 1, 2023
XR Startup Program

XR Startup Program

January 31, 2023
What is short selling?

What is short selling?

January 28, 2023
The trade-plus-one(T+1) settlement plan

The trade-plus-one(T+1) settlement plan

January 27, 2023
SEBI’s information database on municipal bonds

SEBI’s information database on municipal bonds

January 25, 2023
Caller Name Presentation (CNAP) proposal by TRAI

Caller Name Presentation (CNAP) proposal by TRAI

January 20, 2023
Oxfam Report -‘Survival of the Richest’

Oxfam Report -‘Survival of the Richest’

January 19, 2023
Please login to join discussion

Our Offline Classroom Student

CONGRATULATIONS TO 2021 TOPPERS !!!

Rank 171 Kumar Shivashish
Rank 250 Sahithya
Rank 263 Sumit Kumar Thakur
Rank 311 Deepak Ramachandra Shet
Rank 455 Ravinandan B M

February 2023
MTWTFSS
 12345
6789101112
13141516171819
20212223242526
2728 
« Jan    

Browse by Category

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tags

AIR All India Radio BBC Business Line Business Standard dow Down to Earth DownToEarth DTE Economic Times ET FAO Financial Express GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express Indiatoday India today Kurukshetra Livelihoods portal LiveMint Mains News News Paper Newspaper PIB Prelims PRS India RSTV Science Reporter Survey The Hindu The India Express The Indian Express The Print the wire Times of India TOI TOPPERS Yojana
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tag

AIR All India Radio BBC Business Line Business Standard dow Down to Earth DownToEarth DTE Economic Times ET FAO Financial Express GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express Indiatoday India today Kurukshetra Livelihoods portal LiveMint Mains News News Paper Newspaper PIB Prelims PRS India RSTV Science Reporter Survey The Hindu The India Express The Indian Express The Print the wire Times of India TOI TOPPERS Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • SNIPPETS
  • ARTICLES
  • BROWSE
  • DOWNLOADS
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In