Mumbai (Maharashtra) [India], November 4 (ANI): The Securities and Exchange Board of India (SEBI) on Wednesday constituted an 18-member working group to comprehensively review the regulatory framework governing the Innovators Growth Platform (IGP), with the aim of facilitating access to capital markets for startups and innovation-led enterprises operating in sectors such as deep-tech, biotechnology, semiconductors and space.

According to a press release issued by the market regulator, the review will examine the existing eligibility, listing, fundraising and post-listing requirements under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, while ensuring appropriate investor protection.

SEBI noted that India's startup and innovation ecosystem has evolved significantly, with the emergence of enterprises operating in research-intensive sectors that have distinct financing requirements and business models.

'The start-up and innovation ecosystem has evolved significantly, with the emergence of enterprises in areas such as deep-tech, biotechnology, semiconductors, space and other research-intensive sectors,' the regulator stated.

It further noted that such enterprises may have different financing requirements, necessitating a review of the existing framework to assess its relevance and effectiveness.

The working group will be co-chaired by Srini Srinivasan, Chairman of the Indian Venture and Alternate Capital Association, and Prashanth Prakash, Partner at Accel Partners.

The committee will examine whether the existing IGP framework adequately addresses the requirements of research-stage, pre-revenue, intellectual property-led, deep-tech and other innovation-intensive enterprises.

A major area of review will be the eligibility and listing requirements applicable to companies seeking access to the platform.

The working group will also review the eligibility, participation and investment requirements applicable to IGP investors, while maintaining appropriate safeguards for investor protection.

On capital raising, the committee will examine the regulatory framework governing public issues, offers for sale (OFS), pricing, allocation and minimum subscription requirements for entities listed on the platform.

The regulator has also tasked the group with reviewing post-listing obligations, including disclosure requirements, corporate governance standards, trading regulations and continuing compliance requirements.

Another key area of examination will be the process through which companies listed on the Innovators Growth Platform can migrate to the main board of stock exchanges.

The working group will assess the eligibility conditions and procedural requirements governing such migration.

SEBI has further directed the committee to benchmark India's IGP framework against relevant international regulatory structures designed for innovative, technology-led and growth-stage companies.

Based on this assessment, the committee will consider suitable adaptations for the Indian securities market and recommend amendments to the existing regulations, including transitional and implementation measures.

Apart from the two co-chairs, the working group includes representatives from biotechnology, artificial intelligence, space technology, venture capital and private equity.

Among the members are P M Murali, President of the Association of Biotechnology Led Enterprises; M D Ranganath, Chairman of Catamaran Ventures; Umakant Soni, Co-Founder of Bharat.1AI; and Kedar Upadhye, Chief Financial Officer of Biocon Limited.

The committee also includes Pawan Kumar Chandana, Co-Founder and CEO of Skyroot Aerospace Private Limited, representing the space technology sector.

Other members include Siddharth Pai, Founding Partner of 3one4 Capital; Naganand Doraswamy, Founder and Managing Partner of Ideaspring Capital; and Nishant Sharma, Founder and Managing Partner of Kedaara Capital.

The working group will also have ex-officio representation from the Department for Promotion of Industry and Internal Trade (DPIIT), the Institute of Chartered Accountants of India (ICAI), the Institute of Company Secretaries of India (ICSI), the Confederation of Indian Industry (CII) and the Association of Investment Bankers of India.

Chief Regulatory Officers of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will also be part of the group.

Additionally, the Vertical Head of the Corporation Finance Department at SEBI will serve as the Member Secretary.

SEBI said the working group may engage with startups, industry associations and other relevant stakeholders to understand sector-specific financing needs and identify measures to improve access to the Innovators Growth Platform.

'Members of the Working Group may engage with start-ups, industry associations and other relevant stakeholders to understand sector-specific needs and identify measures to improve access to the IGP, while maintaining market integrity and investor protection,' the regulator said.

The recommendations of the working group will be submitted to SEBI for consideration. 

The regulator has not specified a deadline for submitting the recommendations. (ANI)