DESCRIPTION)

BSE already listed startups will support small medium enterprise to raise equity capital for their growth and development and accordingly help them to bloom into full fledged companies. They have also the option to migrate to main board of listing according to the set of norms. BSE Startups will deliver immense opportunities to entrepreneurs, to raise capital in cost effective manner and simultaneously provide opportunity to investors to choose the best company and invest at early stage so that maximum return can be yield. The startup establishments who want to list on BSE startup platform should be deal in prescribed sectors. They must belong to IT and Nano technologies sector, bio-technology and space technology, and others are 3d printing, life sciences, e-commerce, artificial intelligence etc. For listing on the BSE start-up platform, the start-up must be registered with MSME/DIPP with minimum paid-up capital of ₹1 crore. The company must be in functioning for a minimum of 2 years before the date of filing of listing application. They must have positive net worth among other monetary standards. Maximum paid up capital of company would be ₹ 25 crore after issue has made. The post issue paid-up capital (face value) of the company shall not be more than ₹25 crore.

BSE Exchange Platform for SME?

The utmost difficult phase of commencing a new business is not having an idea or plan for its execution but the fund raising is most tough job for it. Getting reliable investors with enough capital for business is quite difficult. Maximum job creation in india came from SME (around total 30 million) sector as they share nearly employment to minimum 70 million people. Nowadays SME became the backbone of indian economy and thus the Bombay stock exchange has provide an option to small and medium sized enterprises to list at BSE SME Exchange platform for raising equity capital for expansion of trade. Prime minister’s task force suggested to set up a platform at dedicated stock exchange for SMEs and SEBI will help them in raising funds for the growth and enlargement of their businesses. One more advantage of this startup platform is that, startup can list on them and launch the initial public offerings even they have no profitable business.

Who controls the risky start-ups

  Mostly firms acquire mainstream voting rights by having the maximum shares with extraordinary polling rights in exchange for providing funding,Investments in venture capitalist are well organized that if the circumstance for the selling of shares of the company arises, the financiers have primary privileges in terms of rewards. To safeguard their investments, venture capitalist firms take an active role in the businesses in which they make investment. They appoint a board member in the company and involve themselves in all key management.decisions, including exercising veto rights over such issues as the sale of the company, additional financing, and major business expenditures. The venture capitalist is usually in the form of partnership wherein the partners take the mutual decision in making investment decisions. Once the company has been targeted for making the investments, they pool their funds in the exchange of the sizeable equity stake. This venture capitalist will buy the stake in these firms, nurture the firm growth and earn good return once successful.