Start- ups can now get listed on a separate
institutional trading platform of the stock
exchanges, such as BSE and NSE
The new platform would be open to only
institutional investors and HNIs
SEBI has also relaxed the mandatory lock-in
period for promoters and other pre listing
investors to six months.
At least 25% of their pre-issue capital would
need to be with institutional investors for
technology start-ups, while this requirement
would be 50% for companies from other areas
Institutional investors, along with family
trusts, systematically important NBFCs and
intermediaries registered with SEBI- with
minimum Net Worth of `500 Crore- would
be allowed to assess the Institutional Trading
The entity would have to list its securities on
the recognised stock exchange within 30 days
of getting approval from SEBI.
Provisions relating to minimum public
shareholding would not be applicable to
entities listed on Institutional Trading Platform without making a public issue.
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