MANU/SPRL/0059/2020

Ministry : Securities and Exchange Board of India

Department/Board : SEBI

Press Release No. : 62/2020

Date : 17.12.2020

Review of framework of Innovators Growth platform under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

SEBI in 2019 had created Innovators Growth Platform (IGP) framework under ICDR Regulations to encourage and facilitate capital raising and listing of startups and other new-age firms which are intensive in use of technology.

Based on feedback and suggestions received from market participants and stakeholders, SEBI is revisiting the existing regulatory norms applicable to IGP. Accordingly, a consultation paper has been floated for seeking comments on proposed changes for IGP framework.

The key proposals under consideration are as follows:

1. Eligibility Criteria: Period of holding of 25% of pre-issue capital to be held by eligible investors for 2 years, is proposed to be reduced to 1 year.

2. Accredited Investors (AIs): AIs' pre-issue shareholding may be considered for entire 25% (instead of present 10%) of the pre-issue capital required for meeting eligibility condition norms. Further, Family trusts may be included as a part of AI definition.

3. Lock-In: Post issue six months lock-in requirements for AIF Cat-II investors is proposed to be exempted, provided shares are held for a period of 1 year from the date of purchase.

4. Discretionary Allotment to Anchor Investors: It is proposed that upto 60% portion of the issue size may be allocated on a discretionary basis, prior to issue opening, to all eligible investors as defined under the IGP framework, provided that there will be a lock in of 30 days on such shares.

5. Differential Voting Rights (DVR)/Superior Voting Right (SR) equity shares: It is proposed that companies listed under IGP framework may be allowed to issue DVR/SR equity shares to promoters/founders.

6. Takeover requirements: The Substantial Acquisition of Shares and Takeover Regulations,........