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SEBI has allowed start-ups and SMEs to list on an Institutional Trading Platform (ITP) without having to make an initial public offering
Only informed investors are eligible to invest in such companies which would have Rs 10 lakh as the minimum amount for trading or investment on the ITP. Companies listed on the ITP would be exempted from the 25 per cent minimum public shareholding norm and will not be permitted to raise capital though they can continue to make private placements, said SEBI.
Standardised norms of entry for companies, eligibility criteria, continuous disclosure requirements, simplified exit rules and corporate governance norms will be prescribed.
Preferential Issues
To enhance transparency, ensure adequate audit trail and apply lock-in for the shares allotted in preferential issues, SEBI has mandated that allottees can subscribe only through their own bank account. Allotments in preferential issues will be made only in demat form and the issuing company has to disclose the ultimate beneficial owner. .
These shares will be transferred to the demat account only after exchanges grant trading approval, said the regulator.
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