Capital markets regulator Sebi said on Monday that by June it will finalise norms for start-ups which will incentivise them to list within the country, and sees a revival in the primary markets over the next 6-9 months.
"Sebi plans to come out with the discussion paper and set to come out with the regulations for start-up companies by June to allow such companies to list within the country. Many new technology companies have several issues and are exploring overseas listing," Sebi chairman UK Sinha said at the sixth Capital Markets Summit organised by CII.
"We need to carve out certain set of rules. We may provide them relaxation in profitability and objects of the issues as these companies work on specific business model," he said.
On the primary market, Sinha said that in spite of the formation of new government and a great budget, it continues to be subdued. In the 11 months of FY'15, only Rs 1,500 crore has been raised and the pipeline is not strong at the moment, he added.
When country is projected to grow at 7% and foreign portfolio investment touched record $46 billion mark, why primary market is subdued, he asked, seeking suggestions from industry to revive it.
However, the retail investors have started returning to the market as lakhs of new demat accounts have been opened. Corporate India also hopeful of revival in primary market over the next 6-9 months period and Sebi will continue its role of developing the market, Sinha said.
Sebi is also considering issuing new regulations for municipal bonds issues and discussing with RBI the proposal to set up India's first International Financial Services Centre (IFSC) in Gujarat's GIFT City.
To deepen capital markets, SEBI also pitched for allowing investment of pension money into various securities instruments and to create an enabling environment for REITs to flourish.
Sinha said he is hopeful of Real Estate Investment Trusts (REITs) and sees huge potential for revival of secondary markets. Nearly 32 per cent of IPO's in Singapore are through REITs.
Providing a fillip to investments in realty and infrastructure sectors, Finance Minister Arun Jaitley last month announced in his Budget speech a rationalised capital gains tax regime for the sponsors of newly-created business structures - REITs and Infrastructure Investment Trusts (INViTs). The government has already resolved the issue of capital gains tax. Sebi has raised some concerns about tax issues with the government, he added.