Differential voting rights: SEBI vs startups

While the industry awaits clarity on issues like the sunset clause for dual-class shareholding, ET breaks down the DVR provisions by Sebi and what it means for startups.ETtech  |  July 01, 2019, 07:35 IST
Differential voting rights: SEBI vs startups Sebi’s approval for issuance of shares with differential voting rights (DVRs) for Indian founders was cheered by the startup ecosystem. While the industry awaits further clarity on issues like the sunset clause for such dual-class shareholding and the net worth limit for shareholders with superior voting rights, the move is being seen as a game changer paving way for far greater founder control of their companies. ET breaks down the DVR provisions introduced by Sebi and what it means for startups: