{"id":40597,"date":"2019-01-17T17:40:02","date_gmt":"2019-01-17T12:10:02","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=40597"},"modified":"2019-01-17T17:40:02","modified_gmt":"2019-01-17T12:10:02","slug":"more-than-an-innovative-exit-route","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/more-than-an-innovative-exit-route\/","title":{"rendered":"More than an innovative exit route"},"content":{"rendered":"<p><a href=\"https:\/\/www.thehindubusinessline.com\/opinion\/columns\/lokeshwarri-sk\/more-than-an-innovative-exit-route\/article26005907.ece\"><strong>More than an innovative exit route<\/strong><\/a><\/p>\n<p><strong><u>Important Facts:<\/u><\/strong><\/p>\n<ul>\n<li>SEBI has introduced <strong>relaxation measures for startup companies to raise funds and get their shares traded on stock exchange<\/strong><\/li>\n<li>The &#8216;Institutional Trading Platform'(ITP) created by SEBI for listing of companies has been renamed as <strong>&#8216;Innovators Growth Platform'(IGP)<\/strong><\/li>\n<\/ul>\n<p><strong><u>Benefits of Innovators Growth Platform:<\/u><\/strong><\/p>\n<ul>\n<li>IGP helps investor in StartUp to divest their shares without making a public offer<\/li>\n<li>IGP provides more profitability and have less stringent measures than other platforms like SME platform or main board of exchanges (NSE, BSE)<\/li>\n<li>IGP allows startup to <strong>trade its share under regular category on main board platform after one year of listing<\/strong> instead of two year earlier<\/li>\n<li><strong>Widened investor base<\/strong> which includes in addition to Qualified Institutional borrowers &#8211; Family trust, Pooled investment fund and Pre listing investors or Accredited investors<\/li>\n<li><strong>Reduced the minimum application size for investors<\/strong> from Rs 1 million to just Rs 200,000.<\/li>\n<li><strong>Removal of current ICDR (Issue of Capital and disclosure requirement) norms<\/strong> which caps single entity holding not more than 25% of the post issue capital<\/li>\n<\/ul>\n<p><strong><u>Concerns for IGP:<\/u><\/strong><\/p>\n<ul>\n<li>Needs to look beyond listing into <strong>post listing interest generation in such securities<\/strong><\/li>\n<li>Needs <strong>to improve liquidity in companies already listed on the platform<\/strong> for benefit of investment in future startups<\/li>\n<\/ul>\n<p><strong><u>Way forwards for IGP:<\/u><\/strong><\/p>\n<ul>\n<li>Besides providing easy exist to existing startup companies, IGP can become fund base for future growth of startups<\/li>\n<li>SEBI need to relax rule of listed startup not making <strong>Initial public offering<\/strong><\/li>\n<li>IGP could acts as <strong>platform for showcase eligible startup for investors to park in money<\/strong><\/li>\n<li>SEBI could consider <strong>introducing market makers at IGP<\/strong> for active secondary market for startup investment<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>More than an innovative exit route Important Facts: SEBI has introduced relaxation measures for startup companies to raise funds and get their shares traded on stock exchange The &#8216;Institutional Trading Platform'(ITP) created by SEBI for listing of companies has been renamed as &#8216;Innovators Growth Platform'(IGP) Benefits of Innovators Growth Platform: IGP helps investor in StartUp&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/more-than-an-innovative-exit-route\/\">Continue reading <span class=\"screen-reader-text\">More than an innovative exit route<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-40597","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1702539393},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/40597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=40597"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/40597\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=40597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=40597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=40597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}