SEBI Overhauls Listing Rules to Fuel Deep-Tech and Space Startups
SEBI creates an 18-member working group to overhaul the Innovators Growth Platform for deep-tech, space, and biotech startups.
The Securities and Exchange Board of India (SEBI) has taken a significant step to empower the next generation of Indian entrepreneurs by constituting an 18-member working group. This specialized committee is tasked with a comprehensive review of the regulatory framework for the SEBI deep-tech listing framework via the Innovators Growth Platform (IGP), ensuring that high-innovation enterprises can more easily access capital markets.
Recognizing that the Indian startup landscape has shifted toward research-intensive fields, SEBI aims to bridge the gap for companies operating in sectors like biotechnology, semiconductors, space technology, and deep-tech. These ventures often possess unique business models and financing needs that traditional listing requirements may not accommodate.
Targeting the 'Research-Intensive' Gap
The regulator noted that the evolution of the innovation ecosystem has brought forth enterprises that are often pre-revenue or heavily reliant on intellectual property. The working group will specifically examine if the current IGP framework is effective for these research-stage and innovation-intensive companies.
The review will focus on several critical pillars of the listing process:
- Eligibility and Listing: Re-evaluating the requirements for companies seeking to enter the platform.
- Investor Participation: Reviewing the eligibility and investment criteria for those investing in the IGP, while ensuring robust investor protection.
- Capital Raising: Analyzing the rules surrounding public issues, offers for sale (OFS), pricing mechanisms, allocation, and minimum subscription requirements.
- Post-Listing Compliance: Assessing corporate governance standards, disclosure requirements, and trading regulations to ensure transparency without stifling growth.
The Path to the Main Board
One of the most vital aspects of this review is the "migration" process. The working group will study the procedural requirements and eligibility conditions that allow a company to move from the Innovators Growth Platform to the main board of stock exchanges, creating a clear growth trajectory for scaling startups.
Global Benchmarking for Local Growth
To ensure India remains competitive on a global scale, SEBI has directed the committee to benchmark the IGP framework against international regulatory structures designed for growth-stage and technology-led companies. The group will recommend adaptations and amendments to existing regulations, including implementation and transitional measures tailored for the Indian market.
Who is Leading the Charge?
The working group is co-chaired by Srini Srinivasan, Chairman of the Indian Venture and Alternate Capital Association, and Prashanth Prakash, Partner at Accel Partners. The 18-member team brings together a powerhouse of expertise from various cutting-edge sectors:
Industry Experts and Representatives:
- Space Technology: Pawan Kumar Chandana (Co-Founder and CEO, Skyroot Aerospace Private Limited).
- Biotechnology: P M Murali (President, Association of Biotechnology Led Enterprises) and Kedar Upadhye (CFO, Biocon Limited).
- Artificial Intelligence: Umakant Soni (Co-Founder, Bharat.1AI).
- Venture Capital & Private Equity: M D Ranganath (Chairman, Catamaran Ventures), Siddharth Pai (Founding Partner, 3one4 Capital), Naganand Doraswamy (Founder and Managing Partner, Ideaspring Capital), and Nishant Sharma (Founder and Managing Partner, Kedaara Capital).
By integrating voices from both the funding side and the technical side, SEBI hopes to create a balanced ecosystem where high-risk, high-reward innovation can find the sustainable funding it needs to thrive.