In a big boost for the Indian start-up community, Securities and Exchange Board of India (SEBI) has announced a series of measures making it easier for start-ups to list on its Innovators Growth Platform (IGP) for fund-raising, reports Hindu Businessline.
SEBI has said that instead of two years, eligible investors, mostly institutional players, will be required to hold 25 per cent capital only for one year before the issue. It has also hiked the pre-issue shareholding from 10 per cent to 25 per cent.
The move is likely to encourage more big investors to fund start-ups in the expectation that they could list in a year.
Furthermore, SEBI has allowed the startups listing on IGP to allocate up to 60 per cent of the issue size on a discretionary basis (with a lock-in of 30 days on such shares), before the issue opening to eligible investors. Earlier, the same was not allowed.
This gains significance, as out of about 50,000 start-ups registered with the government, not many have listed with IGP so far.
Meanwhile, SEBI has also tightened the de-listing rules to allow transparent price discovery. It has also done away with the list of restricted activities or sectors from the definition of venture capital undertaking to provide flexibility to Alternative Investment Funds (AIF).
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.