SEBI to relax listing norms for dotcom cos

"The argument is that overseas listing norms are tougher and if Indian dotcom companies can list on the stock exchanges of developed countries, they should be automatically given the approval to list on domestic exchanges as well," he said.

Many Indian dotcom companies like Rediff.com, Indiainfoline.com and Indiatimes.com have already announced plans to list on the tech-heavy US Nasdaq exchange. In fact, Rediff.com have already announced pricing of its proposed 75 million ADRs at $ 10-12 per ADS.

SEBI officials, however, said that the proposal would not be rushed through as there were apprehension in several quarters on the long-term viability of many dotcom companies. Analysts also feel the regulator should be careful while allowing dotcom companies to list on domestic bourses. SEBI is in the process of standardising the valuation of dotcom companies.

The market regulator had recently relaxed guidelines for technology, biotech and telecom companies, allowing them to issue only 10 per cent equity through initial public offerings (IPOs) as compared to 25 per cent for companies in other sectors.

Mehta said SEBI would take up the issue with all the seriousness it deserved. According to experts, after the much publisiced failure of Boo.com and some others, there have been a loss of investor interest in the stocks of technology and internet companies.

"The current regulations ensure that the dotcom companies comply with required standards, applicable to other companies for listing on the domestic exchanges," Mehta said. According to experts, more than 10 Indian dotcom companies have plans to list on the US bourse, mainly the Nasdaq.