Markets regulator to take a leaf out of US dual-class structures

While there is a need for dual-class shares in India, previous issuances are languishing

The Securities and Exchange Board of India (Sebi) is studying the success of dual-class share structures in the US before similar instruments can be rolled out in India, said people with the direct knowledge of the development.

The markets regulator has set up an expert group, which is looking at whether structures such as differential voting rights (DVRs) can take off in India the way they have in the US. 

The move follows a representation from market participants highlighting the need for such instruments. The demand comes at a time when domestic start-ups are gaining prominence in the eco-system.

Globally, dual-class share structures