StartupExchange.in Act, 2023

Act governing Startup Exchange, to provide a legal framework for the regulation of startups and investors entering in the startup ecosystem.

11/10/20233 min read

StartupExchange.in Act, 2023

An Act to provide for the regulation and development of the StartupExchange.in, and for matters connected therewith or incidental thereto.

Be it enacted by the Parliament of India in the Seventy-fourth Year of the Republic of India as follows:-

Short title and commencement

  1. (1) This Act may be called the StartupExchange.in Act, 2023. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

Definitions

  1. In this Act, unless the context otherwise requires,-

(a) "StartupExchange.in" means the stock exchange established under this Act;

(b) "securities" means shares, stocks, bonds, debentures, or other instruments of a company or body corporate, and includes any instrument specified in Schedule I to the Securities Contracts (Regulation) Act, 1956 (24 of 1956);

(c) "stock broker" means any individual, firm, company, or association of individuals, firms, or companies who or which acts as a broker in respect of securities on the StartupExchange.in;

(d) "Central Government" means the Government of India.

Establishment of StartupExchange.in

  1. (1) The Central Government shall, by notification in the Official Gazette, establish a stock exchange to be known as the StartupExchange.in. (2) The StartupExchange.in shall be a body corporate and shall have perpetual succession and a common seal.

Objects of StartupExchange.in

  1. The objects of the StartupExchange.in shall be to,-

(a) provide a platform for trading in securities of startups; (b) promote the development of the startup ecosystem in India; and (c) protect the interests of investors.

Powers of StartupExchange.in

  1. The StartupExchange.in shall have the power to,-

(a) make rules and regulations for the conduct of its business; (b) admit or suspend the membership of stock brokers; (c) list and delist securities; (d) settle transactions in securities; (e) collect and disseminate information relating to securities markets; and (f) take such other measures as may be necessary or expedient to achieve its objects.

Management of StartupExchange.in

  1. (1) The StartupExchange.in shall be managed by a Board of Directors, which shall consist of the following members:-

(a) the Chairman, who shall be appointed by the Central Government; (b) two Directors, who shall be nominated by the Securities and Exchange Board of India (SEBI); (c) two Directors, who shall be elected by the stock brokers; and (d) one Director, who shall be appointed by the Central Government in consultation with the other members of the Board.

(2) The Board of Directors shall be responsible for the overall management and control of the StartupExchange.in.

Powers and duties of the Central Government

  1. (1) The Central Government shall,-

(a) appoint the Chairman of the Board of Directors of the StartupExchange.in; (b) issue directions to the StartupExchange.in on matters of policy; (c) make rules and regulations for the implementation of this Act; and (d) perform such other functions as may be necessary or expedient to achieve the objects of this Act.

(2) The Central Government may, by notification in the Official Gazette, amend Schedule I to this Act.

Offences and penalties

  1. Whoever,-

(a) fails to comply with any provision of this Act or any rule or regulation made thereunder; or (b) makes any false or misleading statement in any document required to be submitted under this Act or any rule or regulation made thereunder,

shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten lakh rupees, or with both.

Protection of action taken in good faith

  1. No suit, prosecution or other legal proceeding shall lie against the Central Government, the StartupExchange.in, or any of its officers or employees for anything done or intended to be done in good faith under this Act or any rule or regulation made thereunder.

Power to make rules

  1. The Central Government may make rules for carrying out the provisions of this Act.

Repeal and savings

  1. (1) The StartupExchange.in Act, 2023 shall be repealed. (2) Notwithstanding the repeal of the StartupExchange.in Act, 2023, anything done or any action taken under the said Act shall be deemed to have been done or taken under this Act,

This is proposed as per objective of this website given on the home pageand does not reflect governing statutory authority

www.startupexchange.in