#MarketWire is a quick round up of notable business movements of the day.
Only 1 Startup India Application Cleared in 90 Days
Indian Prime Minister Narendra Modi had announced Startup India action plan in January this year, to layout policies and norms to help startups progress in the country, and launched the startup web portal and mobile app in April. Out of close to 250 applications which had registered on the Startup India portal, seeking permission to set up new business, only a single project has gotten clearance.
The reason behind such a low approval rate has been stated to be incomplete applications, and many ideas not being innovative enough. The sole startup which has been selected is Hyderabad based renewal energy firm, Cygni.
The portal was set up to enable startups avail the tax benefits, provide them with a real-time recognition certificate and keep them abreast with various relevant releases issued by the Government, partnering incubators etc., among other things. DIPP is regulating the startup approval closely, as it has set up an inter-ministerial board to verify the eligibility of start-ups opting to avail tax and IPR-related benefits. Read More
SEBI to Ease Startup Listing Norms by July 2016
The regulator for the securities market in India, Securities and Exchange Board of India (SEBI), is now keen on driving Indian startups to head for a listing on Institutional Listing Platform, as it plans to relax norms by July 2016 to help them raise funds through listing and give an easier exit opportunity to their existing investors including those from abroad.
Institutional trading platform (ITP) got updated guidelines by SEBI in August 2015, to allow eCcmmerce, data analytics, bio-technology and other startups to list and trade on their shares. The platform however failed to get any response, as no startup has gone for a listing on ITP.
“What we have noticed is that most of the companies that have got listed in past one year or so are in new technology sectors or are technology-driven businesses. This gives us an idea about the direction in which our economy is moving” says SEBI chairman U.K. Sinha. Read More
6 Startups Blacklisted from IIT Campus Placements
On Friday, placement heads of 16 institutes, at a meeting of the All IIT Placement Committee, decided to blacklist 6 startups in the upcoming placement season for 2016-17. These were those startups which withdrew their offers after issuing confirmation letters to students.
The forum has warned strict action also against the companies which have changed the offer, either in terms of compensation or joining date. At least five companies had reduced salaries by as much as 25%, says IIT-Madras placement advisor, Babu Viswanathan. “We are giving these companies a week’s time to respond. If they don’t respond, they will be blacklisted,” he added. Read More