The Securities and Exchange Board of India vide its notification dated 17th December 2020 has revised the existing regulatory norms applicable to innovators growth platform based on the feedback and suggestions received from market participants and stakeholders.
The following changes have been proposed for the IGP framework which is under consideration:
- The 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.
- The AIs’ pre-issue shareholding may be considered for the entire 25% (instead of the present 10%) of the pre-issue capital required for meeting eligibility condition norms.
- 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.
- 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.
- Eligibility requirements to have 75% of capital to be held by QIBs as on date of application for migration to main board (for a company which does not satisfy the requirements of profitability, net worth, net assets etc.) may be reduced from 75% to 40%.
