Mumbai: The Chairman of the Securities and Exchange Board of India (SEBI), U.K. Sinha said that it is open to any changes in regulations to actively promote listing of start-ups and small and medium enterprise.
“It is true that not a single initial public offer (from a start-up) has taken place after the implementation of start-up listing norms but I am not disappointed on that account because SME segment similarly has taken time,” Sinha said.
“I am reminded that BSE first came out with SME platform as early as 2004. But it took time and then there were series of mistakes, and series of changes had to be incorporated and finally after what was done in 2011, things have started picking up in the SME segment,” he said.
The SEBI, SIDBI and the stock exchanges were making efforts to reach out to the startups and SMEs. “I will be very happy if your industry also participates in this effort because these are market development activities and making people aware will take time. Stock exchanges, brokers and investment bankers should work together in various parts of the country in areas where there is potential,” Sinha said.
The market regulator had held two meetings, one in Delhi, one in Bengaluru with startups after the regulations were framed and the regulator is ready to hold further such meetings.
Besides, he noted that market development was also required in REITs (Real Estate Investment Trusts).
“REITs regulations came over a year ago but since then not a single REIT has listed, may be due to some tax issues with the government. But you (investment bankers) should also make your voice heard on the issue,” Sinha said.
He said, "Investment bankers must look into the top 500 companies, startup segment, SME segment, REITs and companies for possibilities. If you feel review and changes are required, please let us know we have an open mind and will have a relook at it if backed by solid evidence."
In August this year, SEBI had notified a new set of listing norms for startups, including e-commerce ventures, on a separate platform of domestic stock exchanges.
(With agency inputs)