Sebi proposal may bolster IPO-bound founders’ rights
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Synopsis
The proposals have the potential to help founders dilute stakes without losing control, make tax structures more efficient and help in succession planning.
Top-tier startups such as Paytm, Zomato, PolicyBazaar, Nykaa and Delhivery are, however, unlikely to get the benefits as the proposals are still at the consultative stage.
MUMBAI | BENGALURU: The Securities and Exchange Board of India’s proposal to ease rules on superior voting rights (SR) shares could solve some legacy issues for startup founders looking to publicly list their companies, industry insiders said.
The proposals have the potential to help founders dilute stakes without losing control, make tax structures more efficient and help in succession planning.
January 15, 2021
× In another significant relief for India Inc in the current pandemic times, the Ministry of Corporate Affairs (MCA) has allowed companies to hold their Annual General Meetings (AGMs) scheduled for 2021 through video conferencing (VC) or other audio-visual means (OAVM) till December-end.
This dispensation will also be available for AGMs that were due to be held in 2020 and where companies had obtained individual extension from the Registrar of Companies (RoC).
Last August, the MCA had granted more time to companies that had not been able to hold their AGMs for FY20. This was allowed so long as they filed a separate application for this purpose before the concerned RoC. Most RoCs had allowed extension till December 31, 2020.