{"id":114811,"date":"2021-06-25T10:40:46","date_gmt":"2021-06-25T05:10:46","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=114811"},"modified":"2021-07-01T11:40:43","modified_gmt":"2021-07-01T06:10:43","slug":"india-should-lower-entry-barriers-for-companies-wishing-to-float-ipos-sebi-should-be-more-like-sec","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-should-lower-entry-barriers-for-companies-wishing-to-float-ipos-sebi-should-be-more-like-sec\/","title":{"rendered":"India should lower entry barriers for companies wishing to float IPOs. SEBI should be more like SEC"},"content":{"rendered":"\n<p><b><span data-contrast=\"none\">Synopsis<\/span><\/b><span data-contrast=\"none\">:\u00a0SEBI needs to usher in reforms to make Indian public equity markets more attractive to investors\u00a0and companies willing\u00a0to issue IPOs (Initial Public Offer).<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"none\">What is an IPO?<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"none\">Whenever a company issues its shares first time to the public, it is known as Initial Public Offer (IPO).\u00a0Issuing shares is a method of raising capital.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"none\">Eligibility criteria for companies willing to float an\u00a0IPO.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"24\" aria-setsize=\"-1\" data-aria-posinset=\"35\" data-aria-level=\"1\"><b><span data-contrast=\"none\">SEBI<\/span><\/b><span data-contrast=\"none\">\u00a0(Securities and Exchange Board of India) has a\u00a0tougher\u00a0criterion:\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"24\" aria-setsize=\"-1\" data-aria-posinset=\"13\" data-aria-level=\"2\"><span data-contrast=\"none\">Tangible assets of at least\u00a0<\/span><b><span data-contrast=\"none\">Rs 3 crore<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"24\" aria-setsize=\"-1\" data-aria-posinset=\"14\" data-aria-level=\"2\"><span data-contrast=\"none\">Exhibit\u00a0<\/span><b><span data-contrast=\"none\">average operating profits of Rs 15 crore\u00a0<\/span><\/b><span data-contrast=\"none\">in the preceding three years with no operating losses in any one of those\u00a0years.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"24\" aria-setsize=\"-1\" data-aria-posinset=\"15\" data-aria-level=\"2\"><b><span data-contrast=\"none\">Net worth of Rs 1 crore\u00a0<\/span><\/b><span data-contrast=\"none\">in each of the three preceding years.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<h5><b><span data-contrast=\"none\">Securities and\u00a0Exchange Board of India<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<p><b><span data-contrast=\"none\">Source<\/span><\/b><span data-contrast=\"none\">:\u00a0<\/span><a href=\"https:\/\/timesofindia.indiatimes.com\/blogs\/toi-edit-page\/what-mumbai-can-learn-from-new-york-india-should-lower-entry-barriers-for-companies-wishing-to-float-ipos-sebi-should-be-more-like-sec\/\"><span data-contrast=\"none\">TimesofIndia<\/span><\/a><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis:\u00a0SEBI needs to usher in reforms to make Indian public equity markets more attractive to investors\u00a0and companies willing\u00a0to issue IPOs (Initial Public Offer).\u00a0 What is an IPO?\u00a0 Whenever a company issues its shares first time to the public, it is known as Initial Public Offer (IPO).\u00a0Issuing shares is a method of raising capital.\u00a0\u00a0 Eligibility criteria&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/india-should-lower-entry-barriers-for-companies-wishing-to-float-ipos-sebi-should-be-more-like-sec\/\">Continue reading <span class=\"screen-reader-text\">India should lower entry barriers for companies wishing to float IPOs. SEBI should be more like SEC<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[],"class_list":["post-114811","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704829608},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=114811"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114811\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=114811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=114811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=114811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}