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SEBI's Brush with Upstart Valuations

The Morning Brief

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The Value of a Start-Up

mitik sebys scrutiny of practics involved in arriving at starta valuations may lead to consistency. It's a fact that fund managers suffering from fomo have been lax, and many looked the other way as long as the gravy train continued running. For companies that want to go public but do not have a proven tract record of profits for, say, three to four years, how about allowing them to only raise new money to fund growth? Disallow promoters, founders, existing shareholders from selling shares in the secondary market. Once post listing, the price stabilizers, the lockins expire, allow them to sell as well.

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