May 12, 2021

With an aim to boost listing of start-ups, markets regulator SEBI has notified a slew of relaxations to norms, including reducing holding period for pre-issue capital and allowing discretionary allotment to eligible investors.


  • The changes have been made to the framework for listing on the Innovators Growth Platform (IGP).

  • This comes after the board of SEBI approved a proposal in March in this regard.

  • Other relaxations include easing delisting requirements and relaxation in guidelines for migrating to the main board.

  • This is aimed at making the platform more accessible to companies in view of the evolving start-up ecosystem.

  • The regulator has reduced the period of holding of 25 per cent of pre-issue capital of the issuer company by eligible investors to one year from the current requirement of two years.

  • The term 'Accredited Investor' for the purpose of IGP is renamed as 'Innovators Growth Platform Investors'. Such investor's pre-issue shareholding would be considered for entire 25 per cent of the pre-issue capital of the issuer company against the present limit of only 10 per cent.