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India Plans Ipo Rule Changes To Lure Homegrown Start-Ups: Sources


Ron Burgundy
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Employees of Snapdeal, an Indian online retailer, sort out delivery packages inside their company fulfillment centre in MumbaiIndia's market regulator is planning rule changes that will make it easier for homegrown start-ups to list their shares on local bourses, sources involved in the process said, helping domestic investors to bet on the country's booming online economy. The Securities and Exchange Board of India (SEBI) is considering easing rules on mandatory disclosure for the draft prospectuses of Internet-based companies, the sources said. One of the main items that could be scrapped is the need to detail the use of proceeds from the initial public offering of shares, they said. This is currently an obstacle for start-ups, as these companies don't typically use cash to build plants or purchase tangible assets.




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