Sebi to allow IPOs by tech companies with superior voting right shares

Capital markets regulator Sebi plans to allow technology companies having superior voting right shares to launch their IPOs, subject to enhanced corporate governance among several other conditions.

The regulator is planning to issue a new set of norms for differential voting rights to allow listing of firms having some shareholders with superior voting right shares, but it may not allow as yet shares with lower or fractional voting rights.

The new norms are particularly aimed at helping new technology companies with asset light business model, where promoters or founders may be key to the company's success and may need to retain controlling powers even when they prefer equity over debt for raising funds.

The new norms, which would be discussed by the Sebi board later this week, have been prepared after a public consultation process wherein comments were received from various stakeholders, including the government departments, institutions and the general public, officials said.

The ...