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13/02/2017 02:08pm

Despite a clear framework for start-ups, not even a single company got listed with ITP: UK Sinha

image Despite a clear framework for start-ups, not even a single company got listed with ITP: UK Sinha

New Delhi, Feb 13 (KNN) The Securities Exchange Board of India (SEBI) is planning to change certain norms for its start-up listing platform in order to attract more companies, its chairman UK Sinha recently said.

He said a new Central Know Your Customer (CKYC) mechanism will be in place in few months for providing common and one-time KYC for all financial market intermediaries.

He was addressing the 11th Digital India summit here.

No start-ups has yet got listed with the Institutional Trading Platform (ITP) even after 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.

“We have started discussion with the industry regarding the listing of start-ups, we have been seeking their feedback, what is the problem, whether it’s the state of the economy or any other…,” he added.

The market watchdog has relaxed the mandatory lock-in period for promoters and other pre-listing investors to six months as against three years for other companies. The disclosure requirements for these companies have also been relaxed.

Sebi chief said this KYV is good enough for the entire financial system and shall do away with the need of several KYCs by market intermediaries.

Sinha asserted that Sebi has successfully implemented a common KYC since 2012 for the entire securities market through the KRA system.

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