Sebi eases listing norms for startups
Board approves revamp in delisting rules, de-classification of promoters
New Delhi: Seeking to boost listing of start-ups, markets watchdog Sebi on Thursday decided a slew of relaxations to norms, including reducing holding period for pre-issue capital and allowing discretionary allotment to eligible investors. The changes have been approved to the framework for listing on the Innovators Growth Platform, Sebi said in a statement after the board meeting. Other proposals approved include easing delisting requirements and relaxation in guidelines for migrating to main board. "The board has approved the proposals with respect to framework of Innovators Growth Platform (IGP) under the Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2018, with an objective to make the platform more accessible to companies in view of the evolving start-up ecosystem," Sebi said.
The regulator has decided to reduce the period of holding of 25 per cent of pre-issue capital of the issuer company by eligible investors to one year from the current requirement of two years. The term 'Accredited Investor' for the purpose of IGP is renamed as 'Innovators Growth Platform Investors'. Such investor's pre-issue shareholding should be considered for entire 25 per cent of the pre-issue capital of the issuer company, against the current limit of only 10 per cent. On the lines of provisions for listing of companies on the main board, Sebi has decided that the issuer company on the IGP should be allowed to allocate up to 60 per cent of the issue size on a discretionary basis, prior to issue opening for subscription to eligible investors with a lock in of 30 days on such shares.