IndiaTech, the startup lobby group backed by the chiefs of Ola and MakeMyTrip, is eager to help startup founders retain power in their companies for at least two decades in comparison to the current five years post its IPO, The Economic Times reported.

Ola's Bhavish Aggarwal and MakeMyTrip's group chief executive Deep Kalra have backed the plan, the report said. The suggestion has come as a response to the Securities and Exchange Board of India's (Sebi) white paper on differential voting rights (DVR), an issue in which the Prime Minister's Office (PMO) is said to have become involved, the report added.

The sunset clause by the market regulator has been suggested to be amended by IndiaTech, the report said, adding that the firm has proposed a sunset period of 15 years which can be extended by another five years with shareholder approval.

The sunset clause specifies the number of years DVR prevail after listing.

"A period of 15-20 years after an IPO is significant for the growth of the company, in terms of operations, maintaining profitability, best serving its investors and ensuring stability in management," The Economic Times quoted IndiaTech chief executive Ramesh Kailasam as saying.

"Therefore, a sunset period of five years would not be appropriate, especially for high growth technology companies", he added.

First Published:May 7, 2019 9:21 AM IST