INNOVATORS GROWTH PLATFORM

 

For: Preliminary & Mains

Topics covered:

• Innovators Growth Platform (IGP)?
• What are the Proposals approved by the Board?
• What is Institutional Trading Platform? Why ITP is important?

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News Flash

The SEBI Board has approved the norms for the migration of companies listed on the Innovators Growth Platform (IGP) earlier called startups to the regular trade category of the mainboard.

 

Proposals approved by the Board

• The company should be listed on the Innovators Growth Platform for a minimum period of one year.
• At the time of making the application for trading under the regular category of the main board, the number of shareholders should be minimum 200.
• The company should have profitability/ net worth track record of 3 years or have 75% of its capital as on the date of application for migration held by Qualified Institutional Buyers in accordance with Regulation 6(1) and 6(2) of the ICDR Regulations for mainboard listings.
• The minimum promoters contribution shall be 20% which shall be locked in for 3 years. Period of earlier lock-in of 6 months served at the time of listing on IGP shall be deducted from the stipulated lock-in requirement of 3 years.

 

Background

The SEBI Board in 2018, approved the proposed amendments pertaining to Institutional Trading Platform (ITP) in the SEBI (Issue of Capital and Disclosure Requirements) Regulations,2018 (“ICDR Regulations”).

 

Institutional Trading Platform

• The institutional trading platform (ITP) is a window on stock exchanges where e-commerce, data analytics, bio-technology and other startups can list and trade on their shares.
• The institutional trading platform (ITP) was introduced by SEBI in 2015.

 

Why ITP is important?

• India is losing the race with other global markets on the market capitalisation of its listed universe.
• India’s public market hasn’t grown much in recent years compared to China or developed markets, though many Silicon Valley enterprises are powered by Indians.

 

Important Info

In 2018, SEBI renamed the institutional trading platform (ITP) as the Innovator Growth Platform (IGP).

 

Source: The Hindu Businessline

 

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