SEBI notifies relaxed norms for listing start-ups

Securities and Exchange Board of India (SEBI) has notified a slew of relaxations to norms, including reducing holding period for pre-issue capital and allowing discretionary allotment to eligible investors, with an aim to boost listing of start-ups.

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The changes have been made to the framework for listing on the Innovators Growth Platform (IGP), according to two separate notifications issued.

This comes after the board of SEBI approved a proposal in March in this regard. Other relaxations include easing delisting requirements and relaxation in guidelines for migrating to the main board.

This is aimed at making the platform more accessible to companies in view of the evolving start-up ecosystem.

The regulator has reduced 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 would be considered for entire 25 per cent of the pre-issue capital of the issuer company against the present limit of only 10 per cent.