Listing norms for eCom firms, startups soon: Sebi

The Securities and Exchange Board of India (Sebi) Chairman U K Sinha has assured eCommerce and startup companies that it will come out with regulations and policies for listing them as soon as possible.

“We want our companies to list in india rather than being forced to list outside India. In December, we have had a meeting with about 40-50 people in Bengaluru, we tried to understand their requirements. It appears that a certain set of rules will have to be carved out for them because they have a very specific business model,” Sinha said.

“This meeting was followed up by a discussion with the primary market advisory committee of Sebi recently and now, on the 27th, I have invited these companies and we will be having a discussion. After that, we will float a discussion paper regarding startups and we hope that within 3-4 months, we will be having our policy in place,” Sinha added.
Sinha’s comments assume significance in the the wake of recent media reports that eCommerce major Flipkart was considering a listing abroad rather than India.

Push for women directors

Sinha said that the market regulator has been acting and will continue to act tough against companies that do not comply against the regulations of appointing women directors on boards.

“I find it very shameful that in this country, about 8,000 or 9,000 listed companies cannot find even one woman who is competent enough to be on their boards,” Sinha said.

Any requirement, including the requirement of a woman director, is something which has to be enforced. If people do not follow it willingly, then it will have consequences and the consequences will be as per law and can be very serious, Sinha added.

Regarding real estate investment trusts (REITs), Sinha said that the regulator is still awaiting views from the government on a couple of matters.

“The major issue of taxation of REITs has been addressed in the Budget. Two remaining issues that have been brought to our notice and have gone in representation to the government include minimum alternate tax (MAT) and dividend distribution tax (DDT). Let us see what view the government has on that,” the Sebi chairman said.

Sinha also said that the concerned departments are doing everything possible for Sebi’s merger with FMC.“According to us, there are no major problems in the proposals. There are one or two minor suggestions which we have made to the government. But these are more procedural rather than anything substantial,” Sinha said.

The good thing is that the Bill provides that there will be different dates for notification of different sections of the Act. That will take care of many of our requirements. FMC, Sebi and the Finance Ministry are coordinating how to make a smooth transition, Sinha added.