Home » business news » SEBI committee headed by 'Infosys' Murthy will help start-ups to raise funds through crowdfunding
 
SPEED NEWS

SEBI committee headed by 'Infosys' Murthy will help start-ups to raise funds through crowdfunding

News Agencies | Updated on: 14 February 2017, 12:28 IST
QUICK PILL
  • In June 2014, Sebi had come out with a discussion paper on crowdfunding but the rules are yet to be formalized.
  • The committee will be headed by none other than Infosys co-founder N R Narayana Murthy.

The Securities and Exchange Board of India (Sebi) is likely to come out with norms to help start-ups and entrepreneurs raise funds through crowdfunding, Sebi chairman UK Sinha said recently.

Sebi, according to Sinha has formed a committee, headed by Infosys co-founder N R Narayana Murthy, to suggest ways for raising of funds through crowdfunding. The committee is expected to submit its report in a month, Sinha said.

"The committee is still deliberating on crowdfunding.The committee is very active and sincere about it and I am sure in a month from now, we will get the final report and then we will come to the area of implementation," Sinha said on the sidelines of a corporate governance summit organized by Confederation of Indian Industries on Tuesday.

In June 2014, Sebi had come out with a discussion paper on crowdfunding but the rules are yet to be formalized.

Crowdfunding typically involves young entrepreneurs and small groups of people raising funds for their ventures through various online platforms involving individuals and organisations. Sinha also said that a number of lessons have been learnt from the Amtek Auto crisis.

"There are number of lessons to be learnt from this episode. And I think we will take very important remedial measures very soon," Sinha added. JP Morgan Mutual Fund got into trouble due to its exposure to debt securities of debt-laden Amtek Auto, while a few other mutual funds have also faced similar problems with regard to corporate bonds of a few other distressed firms.

With the country's primary market seeing a record uptrend in four years, Sebi chairman U K Sinha today said the market regulator does not need to "ration" the number of initial public offers (IPOs).

"There are certain countries that do some sort of a rationing for IPOs and I think they have disastrous consequences. India does not do that," Sinha said.

According to Sinha, the number of IPOs this fiscal has already surpassed those in the previous years.

"Between 2011-13, Rs 16,000 crore worth of draft red herring prospectus were filed with Sebi and then they lapsed. Today, that is not the case. Today larger and larger number of corporates are coming," he said.

-PTI

First published: 9 December 2015, 6:09 IST
 
PREVIOUS STORY
NEXT STORY