The American stock exchange helped a lot of tech startups like Google (Google), Facebook (Apple), Apple (Amazon) and Netflix, and these companies are very big today. Given this, the market regulator is trying to introduce a Nasdaq-like platform in India through SEBI Innovators Growth Platform (IGP).
SEBI wants startup companies in India to be helped similarly through the IGP.
SEBI is making big preparations to convert startups into companies like Google, Facebook, know everything
SEBI is preparing to build its own through the Innovators Growth Platform (IGP). In India too, the listing of startup companies will be helped in providing funds by making an easy listing.
Many startup companies in India are set to launch IPOs. These include Zomato, Delivery and Nykaa. SEBI has made the Innovators Growth Platform easy like Nasdaq. SEBI wants to promote the listing of startup companies in India.
SEBI has given this facility to startups so far.
The pre-issue holding period was reduced from the current 2 years to 1 year. This step will facilitate the allocation of startup companies to qualified investors. So far, only companies listed in BSE and NSE had this facility. According to the new rules of SEBI, the company bringing the IPO can allocate up to 60 per cent of the issue size to eligible investors. Its lock-in period will be 30 days. Till now, such allocation was not allowed to startup companies. The pre-issue shareholding of the investor has been reduced to 25 per cent of the pre-issue capital. It was earlier only 10 per cent.
SEBI said that if more than 50 per cent of the start-ups that are not profitable are with qualified institutional buyers, then they can join the main board of the stock exchange. Earlier this limit was 75 per cent. But now it has been reduced. For the takeover of the listed company on the Innovator growth platform, an open offer will have to be brought for 49 per cent instead of the current 25 per cent.