A number of India’s top startups will soon submit a petition to the Securities and Exchange Board of India (Sebi) seeking a revision of rules that govern listing of startups, reported ET Tech, citing industry executives aware of the plans.
The companies including Ola owner ANI Technologies, Lenskart and PolicyBazaar want the market regulator to either remove the rule that mandates promoters to hold at least a 20 percent stake in the companies that they have founded or consider it on a case-by-case basis, the
report said.
“A minimum promoter holding requirement of 20 percent does not exist in other markets such as the US or China. Therefore, we are hopeful that Sebi will consider it to the extent of the promoters’ holding,” an industry representative was quoted as saying in the report.
Ola, PolicyBazaar and Lenskart did not reply to ET’s email queries.
The requirement of promoters holding at least 20 percent makes the listing difficult for startups in the country as most founders have around 10 percent stake in their firms, the report said.
Further, the requirement that promoters make up for the shortfall from their respective investors when their own stakes fall short of the 20 percent requirement has also raised eyebrows, added the report.
