India, June 30 -- In a recent move, the Securities and Exchange Board of India (SEBI) has announced two major relaxations in the shareholding norms for the IPO-bound startups, which are expected to foster a more conducive environment for Indian startups eyeing pubic listings in the country.

During the regulator's meeting in Mumbai last week, its board approved a proposal that will now allow startup founders, who also want to identify themselves as company promoters, to retain their employee stock options (ESOPs) if issued at least a year ahead of the IPO.

While giving a nod to this long-pending proposal from the startup ecosystem, SEBI has also relaxed the norms for investors to offload shares in companies that are going public in India...