Sebi Unveils New Policies for PSUs and Startups

The Securities and Exchange Board of India (Sebi) has announced a series of new proposals following its recent board meeting, a move set to impact public sector undertakings (PSUs) and startup companies alike. Among the key decisions was the introduction of a separate voluntary delisting framework exclusively for PSUs where the government holds over 90% of the stake.

Another notable decision was to simplify compliance protocols for foreign portfolio investors (FPIs) focusing solely on Indian government bonds, aimed at attracting further investments. Additionally, Sebi has cleared a proposal allowing startup founders, regarded as promoters, to retain employee stock ownership plans (ESOPs) granted a year before the company's initial public offering (IPO).

Significantly, the board also mandated certain shareholders, including directors and key managerial personnel, to possess shares in dematerialized (demat) form prior to filing an IPO document. The meeting, chaired by Tuhin Kanta Pandey, marked his second leadership at the helm since taking office on March 1.

(With inputs from agencies.)