With innovator growth platform, Sebi eases startup listing norms

Market regulator Securities and Exchange Board of India (Sebi) has recommended radical changes to make the existing institutional trading platform (ITP), which was introduced in 2015 to enable listings of new-age companies and startups In a consultation paper on Friday, Sebi has proposed to ease the eligibility criteria and also provide relaxations in other areas such as lower minimum application size and more discretion in share allocation to investors. Sebi has also renamed the ITP as innovator growth platform (IGP). The regulator has said the IGP can be designated as the main board platform. Further, start-ups listing on IGP should *get an option to trade under regular category* on the main board after completion of one year of listing. Current rules don’t allow a single entity to hold more than 25 per cent of the post-issue capital to be eligible to list on the ITP platform. Sebi has proposed to remove any cap on post-issue shareholding. Sebi has also reduced the minimum application size for investors from Rs 1 million to just Rs 200,000. Also, the minimum 75 per cent allocation to institutional investors criteria has been proposed to be removed Sebi has said allocation can be made to any category of investors on a proportionate basis. Further, Sebi has proposed to remove the rule that capped allotment to a single institutional investor at 10 per cent. Also, the minimum number of allottees has been reduced from 200 to just 50. Sebi has invited the feedback from market participants by November 16.

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