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A Government Drive to Revive The City of London with a new system for trading shares in Private companies has been dismissed by venture capital and private equity executives as unnecessary and likened to a “new version” of the UK’s ailing junior aim market.
Private bad security and capital exchange systems (Pisces) – suggested by previous conservative government and supported by privelys reevels in private companies with regulated exchanges.
London stock exchange group is one of companies planning to operate a trading venue party, where ABOUT can be sold in a limited number of days per year.
But investors questioned what is asking for the system, adding that the captives of running companies reluctant to refrain from controlling their business.
“I just didn’t see who would use it,” said a partner in a top capital venture company. “This is a bold solution to a problem more complicated than protagonists are willing to understand.”
Hussein Kanji, built Hoxton centures, said: “What problem can this solve?” The new system can be a problem for venture capital packer because selling parts of private exchanges will assign a listed companies in their portfolio portfolio “most likely .
Treasury says PISCES will give strength growing incentive companies to base themselves in the UK and act as a “intermediate step” to finally list the public in London market.
London’s stock exchange suffered investment flowings and lack of company groups such as chip arm groups such as betting companies flowing their main new lists York.
Second part of selling unknown companies has become widespread as companies wait more To list, investors have left searching other ways to avoid.
In the US, the NASDAQ Private Marketer and employees allowed company traders from 2013, while platforms such as Crowdcube, plates and JP Jenkins allowed to trade in the UK trading.
But many capital ventures and private equity investors – say the PISCES can be “interested in using the parts of their own portfolio companies or they do not think it attracts high quality businesses .
Top Executive of Top, Fast-Growing Start-ups “want to control” owners in their parts, especially added people on the first day of a public activity, in addition to people on the first day of a public company.
A person in a higher international strong equity firm added that “hard to handle” work with shareholders they don’t know.
The financial authority authorizes the consent of the companies “very limited” coverage to put restrictions on the types of investors to choose a list of “specific individuals”. This suggests companies permission to limit the price within which their parts can be traddered.
Guernsey-based International Stock Exchange (Tise) has a service for companies to run auctions in their own broker-free parts. Cees Virpaas, Tise’s chief executive, said based on his experience he doubts the chicks succeed.
“We doubt that the rules (for Pisces) are sufficient to succeed, because companies still have revelation requirements,” he has great costs on a whole list “.
“Pisces is not more than a new version of the purpose,” as in Vermaas, referring to the London stock market suffered in the main rules of London Stock Exchange’s main market.
The FCA says Pisces “will open the door of many opportunities for investors and can change how private companies access investors and grow”, while the treasury is part of. . . Wide reforms to develop competency and invest “of new listing rules and make” megafunds “.
Charles Hayes, Global Co-head of Private Capital of law firm Frosspifields, said “for each (the direction of traveling larger liquidity routes and.. Wider access to private capital “.
