Sebi vets stake control in Zomato's IPO papers for China firm's role

Regulator scans startup's prospectus to check if Jack Ma's Ant group will be issued bonus shares/rights shares.

The Securities and Exchange Board of India (Sebi), which is reviewing the draft red herring prospectus (DRHP) filed by Zomato, is vetting how and where the “control” lies as it is backed by China’s Ant group. 

It is also seeing whether post listing, Jack Ma’s Ant group will be issued bonus shares/rights shares and whether that would require approval under the amended foreign direct investment (FDI) norms for China. “We are looking at certain aspects, including whether start-ups are controlled by Chinese investors and whether the foreign investor has any controlling interest under the Takeover Code. And, since it (Zomato)