Interview Guidance Program (IGP) for UPSC CSE 2024, Registrations Open Click Here to know more and registration
Source: Livemint
What is the News?
Securities and Exchange Board of India(SEBI) has put out a consultation paper seeking comments on its superior voting rights(SR) framework.
What is the Superior Voting Rights(SR) Framework?
- The Securities and Exchange Board of India(SEBI) has introduced the Superior Voting Rights(SR) Framework in 2019.
- Aim of the framework: to allow the founders of technology startups to retain control of their companies after they started trading publicly.
- Need: Promoters or founders of tech companies who are instrumental in starting up a company often lose control of the firm when they dilute their stakes to raise multiple rounds of funding.
Why is this framework being reviewed?
- The framework is being reviewed to give more flexibility to the founders of technology startups when it comes to raising capital and taking their company public.
Discover more from Free UPSC IAS Preparation Syllabus and Materials For Aspirants
Subscribe to get the latest posts sent to your email.
