The Securities and Exchange Board of India vide its notification dated 5th May 2021 has published the SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2021 to further amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.
The Amendment is brought under regulation 282 which deals with applicability of “Innovators Growth Platform”
The Innovators Growth Platform shall be accessible only to institutional investors and non-institutional investors and not to retail individual investors.
A new sub regulation 4 has been inserted which states that if an issuer has issued SR equity shares to its promoters/ founders, the said issuer shall be allowed to make an initial public offer of only ordinary shares for listing on the Innovators Growth Platform subject to compliance with the provisions of this Chapter.
Further under regulation 287(4), an issuer may allocate up to 60% of the issue size on a discretionary basis, prior to the issue opening, to eligible investors, in accordance with the requirements with respect to anchor investors for public issue made on the SME exchange.
Provided that the price of the specified securities offered to eligible investors shall not be lower than the price offered to other applicants.
Provided further that eligible investors shall make an application of a value of at least fifty lakh rupees.
A new regulation 290A has been inserted which deals with the Exit of issuers whose securities are listed and trading on the Innovators Growth Platform pursuant to an initial public offer.
