By Kiran Mazumdar-Shaw , Chairperson, Biocon Group
India is at a defining moment in its scientific and economic journey. With the establishment of the Anusandhan National Research Foundation (ANRF), the country has made a bold commitment to nurture discovery-led research. But for this vision to translate into world-changing innovation, India must urgently address a critical missing link: a public-market pathway for research-stage companies, particularly in biotechnology and drug innovation.
Innovation in life sciences does not follow the fast revenue cycles of digital startups. Drug discovery and advanced biotech development demand deep scientific expertise, high risk tolerance and patient capital over long timelines—often a decade or more before earning the first rupee of revenue. In such sectors, the single most powerful driver of early-stage investment is the availability of a predictable exit mechanism for venture capital and institutional investors. India currently does not provide this.
This is where SEBI’s leadership becomes pivotal. To unlock capital, retain scientific talent, and prevent IP flight, India must create a dedicated listing framework for research-stage innovation companies on the NSE and BSE—similar to what the Hong Kong Stock Exchange (HKEX) implemented with spectacular success.
The HKEX Blueprint: A Decade of Extraordinary Impact
Hong Kong created a specialised listing regime in 2018 for pre-revenue biotech companies. It allowed companies with no commercial revenues—but strong scientific validation—to access public capital under well-defined safeguards. Many questioned whether retail investors could assess the risks involved. HKEX addressed this with rigorous scientific disclosures, advisor oversight and eligibility conditions linked to professional VC investment.
The results have reshaped the global biotech landscape:
- Nearly 30% of all new drugs emerging globally today originate from Chinese biotech companies that grew through HKEX’s listing pathway.
- Close to 20% of Big Pharma’s in-licensing deals now come from these companies, reflecting global confidence in their science.
In less than a decade, China built a world-class biopharma innovation ecosystem—powered in large part by HKEX’s decision to open public markets to research-stage science.
India now has a similar opportunity, but also the risk of missing it.
The India Gap
India possesses world-class scientific talent, deep biotech manufacturing strength, and a growing culture of entrepreneurship. Yet our innovation ecosystem struggles to scale because we lack:
- Long-cycle risk capital
- VC confidence in exit pathways
- A domestic market that rewards early scientific breakthroughs
- A framework to prevent relocation of Indian startups to more supportive jurisdictions
The result is a chronic underinvestment in frontier areas like RNA therapeutics, gene editing, advanced biologics, synthetic biology and next-generation vaccines. Most Indian VCs continue to prefer low-risk digital investments—because that is where exit clarity exists.
A dedicated research-stage listing framework can change this dynamic instantly.
Why SEBI Must Act Now
- ANRF’s success depends on it
ANRF will catalyse new discovery, but its value will remain unrealised unless India also builds downstream capital-market platforms where this research can scale. - VCs need credible exit routes to back high-risk science
When exits become predictable, capital flows. This simple principle drove China’s biotech surge. - India is losing IP and scientific talent
Promising biotech founders are relocating to Boston, London and Hong Kong purely to access better fundraising ecosystems. - Our capital markets are deep and mature
NSE and BSE are more than capable of supporting a dedicated scientific board with appropriate safeguards.
A Balanced, Responsible Model
SEBI can design a research-stage listing board with strong protection mechanisms, including:
- Eligibility limited to companies funded by SEBI-registered VC or AIF investors, ensuring professional diligence.
- Mandatory scientific disclosures on clinical progress, regulatory interactions, IP status and use of proceeds.
- Independent scientific advisory reviews before listing.
- Lock-ins and phased dilution norms to align long-term value creation.
These guardrails mirror global best practices and protect retail investors while promoting innovation.
The Strategic Prize
If India implements this reform:
- Domestic capital will flow into high-science, high-impact innovations.
- India can retain IP, founders and value creation at home.
- NSE and BSE can become global destinations for biotech investment.
- India’s ambition to become the Lab of the World—not just the Pharmacy of the World—will gain real momentum.
India’s bioeconomy already stands at $165.7 billion and is projected to reach $1.2 trillion by 2047. But unlocking this future requires bold reforms that align our scientific aspirations with our capital-market architecture.
A Call to Action
India has the science. India has the talent. India has the ambition. What we now need is the enabling policy that connects discovery to market, and converts ideas into global breakthroughs.
A research-stage listing framework is not a regulatory detail—it is a strategic national imperative.
SEBI has the opportunity to catalyse India’s next innovation wave. The time to act is now.
Kiran Mazumdar Shaw’s OpEd published in The Economic Times on Nov 27, 2025: Biotech it to the market: India’s Bioeconomy can reach $1.2 trillion by 2047 but only with bold capital-market reforms