Sebi proposal may bolster IPO-bound founders’ rights

Mumbai | Bengaluru: The Securities and Exchange Board of India’s proposal to ease rules on superior voting rights (SR) shares could solve some legacy issues for startup founders looking to publicly list their companies, industry insiders said.

The proposals have the potential to help founders dilute stakes without losing control, make tax structures more efficient and help in succession planning.

Top-tier startups such as Paytm, Zomato, PolicyBazaar, Nykaa and Delhivery, which are expected to complete their initial public offerings this year are, however, unlikely to get the benefits as the proposals are still at the consultative stage.