Support SEBI to make business easier rather than misusing liberalization Modi Government has inevitably done and still doing a lot to encourage and support startups in India. Twisted laws and regulations have been simplified by SEBI for startups. However, many startups are taking undue advantage of liberalized laws by misusing the exchange’s platform for money laundering and tax evasion. Support SEBI to make business easier rather than misusing liberalization.    Major changes made in compliances for startups:

• Filing of single form INC 29 to incorporate company
• Separate processing queues at the back office of the MCA which would deal specifically with INC29 submissions
• Removal of Commencement Form – INC-21
• No minimum capital required for incorporating a public or private sector company.
• Board Resolution shall no more be a public document
• Removal of Commencement Form – INC-21

Above highlights of amendments attracted few with perception of illegal gains through suspected money laundering and tax evasion activities. Few days back, SEBI eyed on various entities that were trading on its SME platform and instantly banned 4 publicly traded SMEs and 235 other related entities for allegedly misusing the exchange’s platform. According to a Report issued, certain loopholes are marked:

•  The BSE had launched ITP for its SME platform to facilitate startups and other SMEs to list without the mandatory IPO process
• Provides easier entry and exit options for informed investors
• The institutional trading platform (ITP) could be utilized as a tool for tax planning by staying invested in an SME for a period more than 12 months and exiting at a very high stock price thereby making huge gains with no tax liability.

Keeping this in centre, it is highly suggested that entire pre-listing capital held by promoters shall have restrictive clause of lock-in-period of three years. Such condition would discourage people from accessing the platform only for tax planning. Indian Government and SEBI and rigorously making effort to bring economic reform in the country by promoting startups to go ahead without facing any hurdle. Steps are being taken for startups so that they can go long in India and that too totally hassle- free. Government is coming forth to make the dream true to rank our country at the 50^th position in the Ease of Doing Business Survey seems on the way of achieving reality only if SMEs support the Government by changing their perception of taking illegal advantage through activities like money laundering and tax evasion. It is the time to change the face of our country by supporting our Government and abiding us with all rules and regulations issued. So, stop eyeing on illegal aspect and instead help Government to make business easier for us. ________________________________________________________________________________