SEBI Establishes Working Group to Evaluate Innovators Growth Platform Framework

The Securities and Exchange Board of India (SEBI) has established a dedicated working group to conduct a thorough review of the regulatory framework governing the Innovators Growth Platform (IGP) under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 [1]. The initiative aims to address the changing needs of innovation-led sectors such as deep-tech, biotechnology, semiconductors, and space [1].

Overview of the Regulatory Review

The startup and innovation ecosystem in India has experienced substantial evolution, featuring firms in research-intensive sectors that often present unique business models and financing structures [1]. To evaluate the effectiveness and relevance of the current IGP framework, SEBI has constituted an industry-backed working group [1]. The committee's mandate covers eight major terms of reference ranging from initial eligibility to international benchmarking [1].

Terms of Reference for the Committee

• Existing Framework: Assessing the relevance and effectiveness of current eligibility and listing standards under the IGP [1].
• Research-Stage Enterprises: Evaluating how well the platform suits pre-revenue, intellectual property-led, deep-tech, and other technology-intensive businesses [1].
• Investor Framework: Examining investor participation, eligibility criteria, and capital requirements while safeguarding investor interests [1].
• Capital Raising and Listing: Reviewing public issues, offers for sale, pricing, allocation mechanisms, and minimum subscription mandates [1].
• Post-Listing Obligations: Analyzing continuing requirements, governance standards, corporate disclosures, and trading rules for listed IGP entities [1].
• Migration Paths: Assessing procedures and eligibility for companies transitioning from the IGP to the Main Board [1].
• Global Comparison: Benchmarking the Indian setup against international jurisdictions supporting high-growth, innovative companies [1].
• Strategic Recommendations: Proposing regulatory amendments and implementation roadmaps for SEBI's final consideration [1].

Composition of the Working Group

The newly formed committee features prominent leaders from private equity, venture capital, industry associations, and startup enterprises, alongside ex-officio representatives from regulatory and institutional bodies [1]. Shri Srini Srinivasan, Chairman of the Indian Venture and Alternate Capital Association, and Shri Prashanth Prakash, Partner at Accel Partners, serve as co-chairs [1]. Other industry participants include representatives from the Association of Biotechnology Led Enterprises, Catamaran Ventures, Bharat.1AI, Biocon Limited, Skyroot Aerospace, 3one4 Capital, Ideaspring Capital, and Kedaara Capital [1].

Ex-officio members include nominees 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), the Association of Investment Bankers of India (AIBI), the National Stock Exchange of India Limited (NSE), the Bombay Stock Exchange Limited (BSE), and SEBI's Corporation Finance Department, which provides the Member Secretary [1]. The group is authorized to consult startups, trade associations, and other stakeholders before submitting its formal recommendations to SEBI [1].

The Innovators Growth Platform operates under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, designed to facilitate capital raising for modern, high-growth companies [1].

The review could reshape how deep-tech, semiconductor, space, and biotech firms in India access public markets, potentially altering listing norms, investor eligibility, and post-listing compliance requirements.

The panel's suggestions may result in revised regulations that make public listings more accessible for pre-revenue or deep-tech companies in India.

It remains unconfirmed what specific rule changes or amendments the working group will propose, or how SEBI will ultimately rule on their recommendations.