On 4 November, the Securities and Exchange Board of India (SEBI) constituted a Working Group to review the regulatory framework governing the Innovators Growth Platform (IGP) under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and facilitate access to capital markets for innovation-led enterprises.
The review comes amid the growth of businesses in sectors such as deep-tech, biotechnology, semiconductors and space, which have distinct financing requirements and business models.
Per the Press Release, the Working Group will examine the existing eligibility and listing requirements under the IGP framework, particularly their suitability for research-stage, pre-revenue, intellectual property-driven and technology-intensive enterprises.
The group will also examine the eligibility and investment requirements for IGP investors, the framework for public issues and capital raising, pricing and allocation norms, post-listing obligations, and requirements for migration from the IGP to the Main Board. It will also compare India's framework with international regulatory frameworks for innovative and growth-stage companies.
Srini Srinivasan, Chairman of the Indian Venture and Alternate Capital Association, and Prashanth Prakash, Partner at Accel Partners, will co-chair the Working Group. Its other members include representatives from the Association of Biotechnology Led Enterprises, Catamaran Ventures, Bharat.1AI, Biocon Limited, Skyroot Aerospace, 3one4 Capital, Ideaspring Capital and Kedaara Capital.
The Department for Promotion of Industry and Internal Trade, Institute of Chartered Accountants of India, Institute of Company Secretaries of India, Confederation of Indian Industry, Association of Investment Bankers of India, National Stock Exchange of India, Bombay Stock Exchange and SEBI's Corporation Finance Department will also nominate representatives to the group.
SEBI stated that the Working Group may consult start-ups, industry associations and other stakeholders to understand sector-specific requirements. The group will submit its recommendations to SEBI for consideration.