Reverse-flipping, Startup IPOs Get Boost From Sebi

Market regulator sets up panel to look into 'unbundling' of 'black box' charges by clearing corporations

- KHUSHBOO TIWARI

The Securities and Exchange Board of India (Sebi) on Wednesday announced a slew of measures to ease the compliance burden in the stock markets ecosystem, encourage more companies to list on the bourses after reverse flipping to India, and facilitate greater foreign fund flows into government bonds.

The market watchdog also decided to drop the norm that makes start-up founders and promoters ineligible to hold Employee Stock Options (ESOPs) and other share-based benefits at the time of filing their draft red herring prospectus (DRHP) for a public issue of shares. Sebi has allowed promoters to hold on to their ESOPs granted a year prior to the filing of their DRHP, while disallowing fresh ESOP issuances in the run up to the filing.