SEBI, on October 26, 2018, had released the ‘Consultation Paper to Review the Framework for Institutional Trading Platform’, with the objective of proposing changes to the regulatory framework for institutional trading platform, under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (‘ICDR Regulations’). Subsequently, at its meeting held on December 12, 2018, SEBI approved the proposals for amendments to the ICDR Regulations pertaining to the platform. The platform will be renamed the ‘Innovators Growth Platform’ (‘IGP’). The key proposals approved by SEBI in relation to listing on the IGP are set out below:

(i)      25% of the pre-issue capital of the issuer company should have been held for at least a period of two years by qualified institutional buyers, family trusts with a net worth exceeding INR 500 crores (approx. US$ 72 million), certain regulated entities (including Category III FPIs) and/or certain ‘Accredited Investors’ (who should not hold more than 10% of the pre-issue capital).

(ii)     The requirement that no person (individually or with persons acting in concert) should hold 25% or more of the post-issue capital of the issuer company will be removed;

(iii)    The minimum application size and trading lot of INR 10 lakhs (approx. US$ 14,000) will be reduced to INR 2 lakhs (approx. US$ 2,900) and in multiples thereof;

(iv)     The minimum reservation of allocation to any specific category of investors will be removed;

(v)       The minimum number of allottees will be reduced from more than 200 to 50; and

(vi)     The minimum net offer to the public will be required to be in compliance with the minimum public shareholding norms of SEBI and the minimum offer size to be INR 10 crores (approx. US$ 14 million).