BSE, (forrmerly Bombay Stock Exchange) has signed a memorandum of understanding (MoU) with IIT Alumni Council to encourage listing culture for startups and develop a ‘high investor depth’ startups platform.
IIT Alumni Council is the largest global body of alumni, students and faculty across all the 23 IITs with over 100 city chapters globally.
This alliance between BSE and IIT Alumni Council will ensure entity transparency, governance improvement and market discovery of share price, provide liquidity for PE investors and enable retail participation, BSE said in a statement.
Ravi Sharma, President and Chief Volunteer of the IIT Alumni Council, said, to increase access to pool of investors for start ups, IIT Alumni Council would use AI and other automation tools to reduce time, cost and efforts involved in the listing process.
“Further we shall encourage our associated and volunteer-managed funds to underwrite, act as anchor investors as well as market makers for these IPOs. The entry of big ticket investors like Mega Fund into the startup listing space will lead to a paradigm change in the Startup ecosystem and their ability to access capital,” he said.
Ashishkumar Chauhan, MD and CEO, BSE, said BSE has always been in the forefront of helping SMEs and startups get listed on the exchange and raise capital.
“This partnership will enable a complete end to end ecosystem for the proposed social stock exchange. BSE also looks forward to helping more firms get listed on the Exchange as well as creating a sustainable Startup ecosystem through this strategic alliance,” he said.
The newly-formed partnership will ensure a complete end to end ecosystem for the proposed social stock exchange and will also look at revitalising the Startup platform by attracting a wide range of VC/PE funds to act as underwriters and market makers (backed by the BSE members in the frontend).
The alliance will help reduce listing time, complexity and cost for SMEs and startups by streamlining, automating and standardising the documentation processes.
Besides, category 1 merchant banks will be empanelled to help automate the listing process so as to reduce time and cost of listing on the Startup Platform of the Exchange.