Current rules don't allow a single entity to hold more than 25 per cent of the post-issue capital to be eligible to list on the ITP platform. Sebi
has proposed to remove any cap on post-issue shareholding.
Sebi has also reduced the minimum application size for investors from Rs 1 million to just Rs 200,000.
Also, the minimum 75 per cent allocation to institutional investors criteria has been proposed to be removed. Sebi has said allocation can be made to any category of investors on a proportionate basis.
Further, Sebi has proposed to remove the rule that capped allotment to a single institutional investor at 10 per cent. Also, the minimum number of allottees has been reduced from 200 to just 50.
Also, shares allotted as ESOPs will be exempted from the six-month lock-in requirement applicable to entire pre-issue capital.
Sebi has invited the feedback from market participants by November 16.
The revamp comes after the ITP failed to gain much traction. In June, Sebi had constituted a group to look into issues and suggest changes to boost listings on this platform.
The group had representatives from the Indian Software Product Industry Round Table (iSPIRT), The Indus Entrepreneurs (TIE), the Indian Private Equity and Venture Capital Association (IVCA), law firms, merchant bankers, and stock exchanges.