Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Will the next Alibaba be from India?
Tue, 7 Apr Pre-Open

The business landscape of the world is fast changing with the huge penetration of internet and mobile telephony. For example the world's largest online seller Alibaba does neither actually maintain a huge inventory of goods nor does the global radio taxi operator Uber own a huge fleet of taxis. However these players have built a place under the sun on the basis of their internet and mobile based business models. India has witnessed the rise of a large number of start-up companies such as Flipkart, QuickHeal, InMobi, Paytm, to name a few, that have the potential to become the Amazons and Ubers of tomorrow. But the success of these domestic ventures will depend upon their ability to tap funds for expansion and growth. To bridge the gap, market regulator Securities and Exchange Board of India (SEBI) has released a discussion paper on regulations governing the listing and growth of local startups in software product development and e-commerce ventures in India.

Considering that the business dynamics of startups is quite different from traditional business, SEBI has outlined a number of sweeping changes in the regulatory requirements for them. Prominent among them is the proposal to do away with the need to come out with an Initial Public Offering (IPO) by startups in order to get listed on the Institutional Trading Platform (ITP). This is because angel investors and venture capital funds are the major investors in startups. Also startups wishing to tap capital markets through IPO need not necessarily be profitable but should demonstrate significant potential for future growth. The lock-in period for promoters has also been proposed to be six months as opposed to three years for conventional IPOs. At the same time in order to protect small investors from the risk inherent in startups, the investment limit in startup IPOs has been proposed to be fixed at Rs 10 lakhs while the minimum trading lot post listing would be Rs 5 lakhs.

A number of startups in India have managed to attract attention and raise venture capital funding. In order to lay the path for their future growth, SEBI has outlined a number of path-breaking proposals to get them listed on the Indian bourses. These proposals are expected to ease doing business and transform India into an attractive investor destination.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Will the next Alibaba be from India?". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.