This is a significant development, one that bolsters the confidence in Indian markets as well its regulators. Effective differential voting rights – or the lack of it – was one of the key limiting factors that made startups consider listing abroad as opposed to doing so in India. The development is a major step forward on the ease of doing business index and will enhance the attractiveness of listing in India.

This move by SEBI signals that the regulator understands the needs of the startup ecosystem and is committed to enabling its growth. Progressive policy making such as this one will bring our business environment on par with international alternatives and move us further on the path of being among the best startup ecosystems in the world.