Geetika writes how SEBI’s proposed guidelines and DVRs can translate into hyper-growth for tech startups, despite there being an astounding year-on-year drop of 78 percent in the number of IPOs in the country between Q4 2017 and Q4 2018.
She writes about the lack of depth in the capital market, inflexible regulations, and a few catches in the IPO process that have been restricting the transition of Indian unicorns into publicly-listed companies.
Geetika explains how SEBI has made the scenario more conducive for startups eyeing IPOs by proposing relaxed regulations for listing of startups on the stock exchanges.
It has defined a Differential Voting Rights (DVRs) framework that can favourably upturn the game for tech startups to raise funds without diluting control over their business, she writes.
The framework allows only the founders, promoters, and those holding executive positions within the company the eligibility to be its superior shareholders, and have superior voting rights (SR).