Mumbai, Oct 12: The Department of Electronics (DoE) has approached the Securities & Exchange Board of India (Sebi) to allow listing of knowledge-based companies on the Over The Counter Exchange of India (OTCEI) through relaxation of listing norms. According to DoE secretary Ravindra Gupta, the move is to allow startups which may not fulfil the initial public offering (IPO) needs as per the Sebi guidelines to be listed on the OTCEI."There is a tremendous potential in all these knowledge companies, which need funds in the initial phase of growth," Gupta said. He added this was important since the venture-capital funds, who will fund these ventures, will have an easy exit option by selling their stake in these companies partly or wholly through OTCEI. "The plan is promote the OTCEI as a Nasdaq in India," the DoE secretary said.
"We have requested Sebi chairman DR Mehta to set up a team to suggest ways to meet the capital requirements of the knowledge companies," Gupta said.
He said the Government was planning to replicate the legal and physical model of venture-capital funds in Silicon Valley for domestic funds.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.