Startup ecosystem expert and TiE Delhi Executive Director Geetika Dayal voices her opinion on how SEBI’s proposed guidelines can galvanise tech startup growth.
Geetika Dayal, as Executive Director TiE Delhi- NCR, is among the set of people who helped lay the foundation of the startup ecosystem in Delhi 18 years ago. From taking over her father’s business to heading TiE Delhi-NCR, she has played a role in energising activities for startups and entrepreneurs to bridge the gap between them and policy makers, academicians, corporates, and investors. She does this through TiE Delhi-NCR’s programmes. Geetika was proprietor at Magnus Consulting from 1991 to 1996.
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).