The SEBI has recently announced new set of norms and a trading platform for the startups which will give them more chance to be in the market. However the well-known ecommerce firms like Flipkart and Snapdeal has not entered into IPO still. Flipkart has remained silent for questions like why they have not been into the market yet. Snapdeal has told that the move on the SEBI is all about to benefit the companies that are focused in India, but in Snapdeal they have a long run. Well it is quite interesting to know that the two top listed ecommerce sites of India have not yet involved themselves in IPO.
The complex structure of Flipkart
In the month of august, the business standard has first entered to know about the pattern of ownership in Flipkart. By gathering these details the business standard has come to know that the Flipkart is a Singapore based firm with their market space in India and it has a very complex structure of ownership. All its authorities are getting controlled by the Singapore regulator.
In the month of November, mint also has tried to give a brief story about the complex ownership structure of the Singapore based form. The story about the Flipkart had a crisp infographic detail about the firm and its base at Singapore. Now while listening to the Singapore based form, they have told that in India, it is much easier to say, but it is tougher than anything to be done. Especially in the Indian market, both in the new and the old platforms, the case prevails. The Flipkart being into IPO is not possible because of two major acts. One is FEMA which is Foreign Exchange Management Act and other one is the issues on convertibility of capital account.
Whom does the new platform benefit then?
The SEBI has clearly told in the press release that the firms which are too much intensive on their information technology, data analytics, intellectual property, Nano-technology and bio technology for providing services, products or even business platforms with the substantial addition of values. According to a quote mentioned by the SEBI, there are about 3100 startups in India has received funds. It is also possible to have many of these startups in to the space of non-retails business. And there are also chances for these startups to get satisfied with QIB requirement of 25%.
For example, the new trading platform of SEBI can benefit the firms like taxi aggregators, as they were operating under the registration made under the Indian government. ANI technologies, running Ola cabs in India is an Indian registered firm and it has received the local funding. Companies similar to ANI will be in better place when compared with the Snapdeal and Flipkart. There are also many Nano-technology firms and IPRs in India. But the point is they were not into business of billion dollars yet.
The complex structure of Flipkart
In the month of august, the business standard has first entered to know about the pattern of ownership in Flipkart. By gathering these details the business standard has come to know that the Flipkart is a Singapore based firm with their market space in India and it has a very complex structure of ownership. All its authorities are getting controlled by the Singapore regulator.
In the month of November, mint also has tried to give a brief story about the complex ownership structure of the Singapore based form. The story about the Flipkart had a crisp infographic detail about the firm and its base at Singapore. Now while listening to the Singapore based form, they have told that in India, it is much easier to say, but it is tougher than anything to be done. Especially in the Indian market, both in the new and the old platforms, the case prevails. The Flipkart being into IPO is not possible because of two major acts. One is FEMA which is Foreign Exchange Management Act and other one is the issues on convertibility of capital account.
Whom does the new platform benefit then?
The SEBI has clearly told in the press release that the firms which are too much intensive on their information technology, data analytics, intellectual property, Nano-technology and bio technology for providing services, products or even business platforms with the substantial addition of values. According to a quote mentioned by the SEBI, there are about 3100 startups in India has received funds. It is also possible to have many of these startups in to the space of non-retails business. And there are also chances for these startups to get satisfied with QIB requirement of 25%.
For example, the new trading platform of SEBI can benefit the firms like taxi aggregators, as they were operating under the registration made under the Indian government. ANI technologies, running Ola cabs in India is an Indian registered firm and it has received the local funding. Companies similar to ANI will be in better place when compared with the Snapdeal and Flipkart. There are also many Nano-technology firms and IPRs in India. But the point is they were not into business of billion dollars yet.