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Relaxed norms for listing start-ups.

SEBI has made changes to the framework for listing on the Innovators Growth Platform (IGP) in order to boost the listing of startups. Sebi has notified a slew of relaxations to norms, including reducing holding period for pre-issue capital and allowing discretionary allotment to eligible investors. The aim is to make the platform more accessible to companies in view of the evolving start-up ecosystem. The regulator has also reduced the period of holding of 25 percent of pre-issue capital of the issuer company by eligible investors to one year from the current requirement of two years.
As far as the provisions for listing of companies on the main board is concerned the issuer company on the IGP would 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. For delisting Reverse Book Building mechanism will not be applicable, and for computation of offer price, the floor price will be determined in terms of takeover regulations, along with delisting premium as justified by the acquirer/promoter.

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