Munbai: Four months after the capital markets regulator made it easier for start-ups to raise money and trade on Indian stock exchanges, no entrepreneur has moved to seek a local listing, preferring instead to raise funds from venture capital (VC) and private equity (PE) firms or individual angel investors.
Tough promoter holding norms set by the Securities and Exchange Board of India (Sebi), uncertainties about the valuations start-ups can attract and doubts over how liquid stocks would be after a listing are deterring start-ups from raising money through initial public offerings (IPOs), market participants say.