Snapdeal Says Easier Listing Norms to Benefit Firms Like Itself

New Delhi: E-commerce major Snapdeal on Tuesday said the Securities and Exchange Board of India's move to relax regulations relating to listing on domestic stock exchanges will benefit "India-focused companies" like itself in the long-run.

Welcoming the market regulator's proposed plans to implement e-IPO and start-up specific listings platform, the city-based firm said it will provide "much needed access to funds for start-ups".

"For us at Snapdeal, we are particularly pleased with this move considering that easing of listings norms will benefit India-focussed companies like ours in the long-run," a company spokesperson said.

According to reports, Snapdeal was looking at American bourses for listing. In 2013, Snapdeal co-founder and chief executive officer Kunal Bahl had talked of US listing without disclosing any deadline.

Capital markets regulator Sebi on Tuesday relaxed its regulations for companies to list and raise funds through a dedicated platform on domestic stock exchanges rather than going overseas.

Under the new norms approved by Sebi's board on Tuesday, the stock exchanges would have a separate institutional trading platform for listing of start-ups from the new age sectors, including e-commerce firms, while the minimum investment requirement would be Rs 10 lakh.

For their listing, Sebi has relaxed the mandatory lock-in period for promoters and other pre-listing investors to six months, as against three years for other companies.

Sebi Chairman U K Sinha said, "Indian start-up space is very vibrant and the country is ranked number five as far as start-ups are concerned."

"More than 3,100 start-ups are there in the country and a large number of M&As have also happened."

"However, most of these start-ups were thinking of listing outside... We have made a very special provision for them," Mr Sinha added.