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Sebi to ease norms for investors willing to invest in startups
1 min read.Updated: 01 Mar 2019, 05:51 PM ISTPTI
Sebi board approved a framework for the process of accreditation of investors for Innovators Growth Platform
Sebi's board had approved a number of other measures to make it easier for startups to get listed on the IGP
NEW DELHI :
To provide a boost for startups seeking to get listed, capital markets regulator Sebi's board on Friday approved easing of norms for accreditation of investors willing to invest in such new-age entities.
At a meeting here, the Sebi board approved a framework for the process of accreditation of investors for Innovators Growth Platform, which will be the name of the stock exchange platform where new-age startups would be listed.
Under this framework, the investor having a demat account will make an application to the stock exchanges or depositories to be recognised as an 'accredited investor (AI)'.
The exchanges and depositories will grant accreditation to these investors for a period of three years, after ascertaining their eligibility.
Earlier in December 2018, the Sebi's board had approved a number of other measures to make it easier for startups to get listed on the Innovators Growth Platform (IGP).
The relaxation in the norms came after tepid market interest to the existing platform and demands from various stakeholders to make the norms easier and the platform more accessible in the wake of expanding activities in the Indian startup space.
While detailed eligibility and other norms for AIs would be notified by Sebi later, sources said it is being proposed that an individual with total annual gross income of ₹50 lakh and a minimum liquid net worth of ₹5 crore will be considered.
In the case of body corporate, the net worth requirement would be ₹25 crore.