New Delhi: To make start-up listing platform more attractive, Sebi Chairman U K Sinha today said the regulator is willing to consider suggestions for possible changes in the norms for such companies.
Besides, a new Central Know Your Customer (CKYC) mechanism, which will provide common and one-time KYC for all financial market intermediaries, will be in place in a couple of months, Sinha said.
The Institutional Trading Platform (ITP) is yet to see any start-up listing ever since an easier set of compliance and disclosure requirements was notified in August 2015.
These norms have been put in place to encourage Indian start-ups and entrepreneurs to remain within the country rather than go abroad for funds.
“We have made a clear framework for start-ups. Despite that, not a single company got listed. If anything is required from our side, Sebi is willing to listen to your (start-up industry) problem and make changes,” Sinha said at the 11th Digital India summit here.
“We have started discussion with the industry regarding the listing of start-ups, we have been seeking their feedback, what is the problem, whether its the state of the economy or any other…,” he added.
For the listing, Sebi also relaxed the mandatory lock-in period for promoters and other pre-listing investors to six months as against three years for other companies.
Besides, the disclosure requirements for these companies have been relaxed.
“Now, this one KYC is good enough for the entire financial system, no need of several KYCs by different market intermediaries,” Sinha said.
The new system should be Aadhaar-enabled and in-person verification should not be required as biometric system will be enough, he added.
Earlier, Sebi had written to the government and sought major changes with regard to design in the newly-implemented CKYC process.
The new process is being executed through the Central Registry of Secularisation and Asset Reconstruction and Security Interest of India (Cersai), an online registry promoted by the central government.
According to Sinha, Sebi has successfully implemented a common KYC since 2012 for the entire securities market through the KRA system
Source: Times of India
