You are here: Home » PTI Stories » National » News
Business Standard

Sebi board to discuss framework for investor accreditation on Innovators Growth Platform

Press Trust of India  |  New Delhi 

To provide a boost for startups, the board is likely to discuss this week the framework for accredited investors, including the eligibility criteria for such entities, according to an

In December, the regulator approved inclusion of Accredited Investors (AI) for the purpose of Innovators Growth Platform (IGP).

Any individual with total annual gross income of Rs 50 lakh and a minimum liquid net worth of Rs 5 crore will be considered as an AI. In the case of body corporate, the net worth requirement would be Rs 25 crore.

The requirements are part of the framework that is expected to be discussed during the Sebi's board meet on March 1, the said.

An investor, having a demat account, can apply for recognition as an AI and their accreditation would be valid for three years.

In case, the financial status changes during this period, then the AI concerned will have to inform stock exchanges and depositories about the same.

At the time of application for listing by a company on the IGP, the merchant bankers will have to carry out due diligence regarding the eligibility of AIs, as per the regulator.

Measures approved in December include renaming the 'Institutional Trading Platform' that the regulator had created for startup listings as 'Innovators Growth Platform'.

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.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 27 2019. 19:13 IST
RECOMMENDED FOR YOU