SEBI: ESTABLISHES FRAMEWORK FOR COMPANIES LISTED ON IGP TO MIGRATE TO MAIN STOCK EXCHANGE
SEBI amends ICDR Regulations to lay down a framework for granting companies listed on the Innovators Growth Platform (‘IGP’) pursuant to an initial public offer, an option to trade under the regular category of the main board of the stock exchange;
To trade under the regular category of the main board, inter alia requires a Company to have – (i) its specified securities listed on IGP of a recognised stock exchange for minimum 1 year, (ii) minimum 200 shareholders at the time of making the application for such migration, (iii) promoters/directors who are not fugitive economic offenders;
Prescribes threshold in respect of net tangible assets, operating profit and net worth for a Company to be eligible for migrating to the main board, accordingly entails a Company to have a net worth of atleast Rs. 1 Cr. in each of the preceding 3 full years, calculated on a consolidated basis; States that a Company’s promoters shall hold at least 20% of the total capital, and such minimum promoters’ contribution shall be locked in for 3 years from the date on which trading approval in regular category of main board is granted; Stating that any excess over and above the 20% of promoter’s holding shall be locked-in for 1 year, specifies that such condition of lock in would not apply to a Company which has been listed on the IGP for a minimum 3 years or more.