Criteria for Startups Seeking Listing

As startups start growing and scaling, they look forward to being listed on Bombay Stock Exchange (BSE) Startup Platforms, MSME Startup Platforms, etc. The ultimate goal of any entrepreneur is to make their startup get recognised, listed and push their company to the pinnacle of success. Bigger companies look forward to investing in startups that are listed which also provides Startup entrepreneurs more exposure and often an honourable exit. The following are the criteria to seek listing:

Sector Specifications: To get listed on BSE Startup Platform, startups should be in IT, ITES, Bio-technology and Life Science, 3D Printing, Space technology, E-Commerce, Hi- Tech Defense, Drones, Nano Technologies, Artificial Intelligence, Big data, Enhance/Virtual Reality, E-gaming, Exoskeleton, Robotics, Holographic Technology, Genetic Engineering, Variable Computers Inside body computer technology and other Hi-tech based companies.

Paid Up Capital: The company must be registered as a startup with the Department of Promotion of Industry and Internal Trade (DPIIT). If the company is not registered as a Startup with DPIIT then the venture’s paid-up capital should be a minimum of Rs 1 crore.

Track Record: The company or the partnership must have a combined track record of at least 2 years while filing the prospectus with BSE.

Post Issue Paid up Capital: The face value or post issue paid up capital of the company should not be more than Rs 25 crores. Investments by Qualified Institutional Buyer (QIB), Angel Investors or Accredited Investors for a minimum period of 2 years at the time of filing prospectus with BSE is preferred.

Net worth: The company must have a positive net worth.

Website: It is mandatory for the company to have a website.

Demat Securities: The company must facilitate trading in Demat securities and enter into an agreement with both the depositories.

Change in Promoters: Promoters of the company should not be changed in the year preceding the date of filing the application to BSE for listing.

Migration from BSE the Main Board: Several companies seek migration to the Main Board of BSE to push their success. It is necessary for the company to be listed and traded on the BSE Startup Platform for at least two years. Post this they can migrate to the Main Board according to the guidelines specified by Securities and Exchange Board of India (SEBI) and as per the procedures laid down in the Issue of Capital and Disclosure Requirements (ICDR) guidelines.

Smruthi Krishnan
Smruthi Krishnan
Smruthi interviews and writes on inspiring entrepreneurs and the success stories of start-ups. She is currently pursuing Economics major from Delhi University.

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