![Untitled-14](https://img.etimg.com/thumb/msid-68158704,width-300,height-225,imgsize-219889,resizemode-75/untitled-14.jpg)
The Ministry of Corporate Affairs may lift the current ceiling of issuing 26% shares with DVRs. The start up community has been asking the government to lift the cap to 51% of the post issue paid up equity share capital.
The Ministry Of Corporate Affairs is also looking at doing away with the requirement of having a 3-year long track record of distributing profits to issue shares with differential voting rights.
“We need to find a way that allows promoters to technology start ups to raise funds without ceding control. This will help them focus on their vision, grow revenues, stay committed to core management operations and all without having to compromise on capital formation,” said a government official.
The market regulator SEBI has also been looking at ways to allow promoters to have superior voting rights, and without impacting corporate governance.
(Catch all the Business News, Breaking News, Union Budget 2024 Events and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.
Read More News on
(Catch all the Business News, Breaking News, Union Budget 2024 Events and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.