After launching StockChain formally at NSE on Wednesday, Manish Kumar, co-founder, GREX said the unlisted companies will benefit from blockchain-driven platform that will keep their share records.
Explaining the StockChain framework, Kumar said, “The underlying technology is Hyperledger based technology that we have deployed today. There are host of benefits that accrue from StockChain to companies."
"One: the companies will get little more hassle free from the challenges that their record keeping poses to them. If you ask any entrepreneur, it's very difficult for them to really keep a tab on what was happening with their registry records and compliance records, etc. and it's very cumbersome to maintain in excel sheets, etc. So that is where StockChain really comes in, keeps it in a digital registry and keeps it on BlockChain. So, there is a lot of trust that they can exuber when they maintain it through BlockChain base framework," Kumar added.
Sankarson Banerjee, chief technology officer at NSE said, "I am personally fairly excited, because the biggest challenges unlisted companies have is that since they do not have the same level of transparency and operational efficiency as listed companies do on exchanges, for them fund raising, price discovery, all that becomes very difficult. Traditionally, it has been very expensive to do the transparency kind of thing, it was very manual, it involved people and verifying paperwork and so it was not really feasible to do it for smaller companies.”
“Today with technology, we can offer transparency to pretty much any company that wants it. Therefore, I think it's a good start and I think that it will become a vehicle for companies to become serious about raising money and becoming public at some point,” Banerjee said.