Suryaa Business Desk: The Securities and Exchange Board of India (SEBI) has taken a decision to facilitate easier capital raising for startups and innovation-based companies in the country. The market regulator has established a special working group to conduct a comprehensive review of the Innovators Growth Platform (IGP) regulations. This committee aims to simplify norms to align with current market requirements, following a period where listing activity on the platform has not met expectations.
SEBI noted that technology-driven industries such as deep-tech, biotechnology, semiconductors, and space sectors are growing rapidly. Recognizing that the financial requirements and business models of these sectors differ from traditional industries, the regulator is working to create a favorable environment for them. The working group will examine whether current eligibility criteria are suitable for firms in the research phase, pre-revenue stage, and those based on intellectual property.
The committee will review investor eligibility, public issue regulations, offer-for-sale conditions, pricing, and minimum subscription requirements. It will also provide recommendations regarding post-listing disclosures, corporate governance, and trading responsibilities. According to officials, the working group's primary functions include simplifying the transition process from the IGP to the main board and benchmarking Indian regulations against international best practices. Financial experts believe these regulatory reforms are significant in shaping India into a global innovation and startup hub, encouraging domestic startups to raise funds through local capital markets.