SEBI forms group to rethink startup access to public capital
Deep-tech ventures may reach investors before proving conventional revenue.
Overview
India’s companies may need years of research and large investments before they earn revenue. is reviewing its , created in 2014 for startups not ready for the . The platform has attracted few companies. An , co-chaired by Srini Srinivasan and Prashanth Prakash, will examine whether it suits research-stage and whose value comes mainly from inventions. The review covers biotechnology, semiconductors, space and other fields, along with listing rules, investor access, pricing, disclosures, company oversight and moving to the .
Easier rules could help companies with long development periods raise public money sooner. They could also reduce reliance on private investors. But companies without proven revenue or profits are harder to value, which could increase risks for ordinary shareholders. must support ambitious technology while protecting investors.
Timeline
SEBI leaves the future of deep-tech public funding dependent on the working group’s recommendations
SEBI has begun a review, but the available reporting does not show that final rule changes have been adopted. The outcome could determine whether Indian deep-tech, biotechnology, semiconductor and space companies can reach public capital before conventional profitability. It will also test whether India can expand financing for without creating avoidable losses for public-market investors.
SEBI asks the group to examine migration from the IGP to the main board
The group will review how companies should move from the IGP to the . Migration rules matter because the platform was designed as a pathway for companies that were not initially ready for conventional listing, rather than as a permanent alternative market. The review will determine whether the transition criteria fit companies whose growth may depend on long research and commercialisation cycles.
SEBI includes disclosure, governance and continuing obligations in the IGP review
The working group will assess post-listing requirements, disclosures and corporate governance obligations. The review addresses how public accountability should work when a company’s value depends heavily on research progress, patents or future commercialisation rather than current earnings. The framework must preserve investor protection while remaining workable for innovation-intensive companies.
SEBI directs the group to review public issues, offers for sale and pricing rules
The review includes fundraising mechanisms, public issues, offers for sale and pricing requirements under the . Valuing companies with limited revenue, no profits or uncertain commercialisation prospects creates different disclosure and pricing challenges from those faced by established issuers. The group must consider whether greater flexibility can be offered without weakening the information available to public investors.
SEBI asks the working group to reassess eligibility and investor access for research-stage companies
The group will examine whether the IGP accommodates research-stage, and businesses. These companies often need substantial capital before they generate conventional revenue or profits, and their development cycles can be much longer than those of ordinary startups. Broader eligibility and investor participation could improve funding access, but could also expose less-specialised investors to greater early-stage risk.
SEBI forms an 18-member working group to redesign the Innovators Growth Platform
SEBI appointed an 18-member group co-chaired by Srini Srinivasan and Prashanth Prakash to conduct a comprehensive review of the IGP. The review covers startups and innovation-led companies in areas including , biotechnology, semiconductors and space. SEBI reopened the framework because the platform has attracted few users more than a decade after its creation.
NSE operates the Innovators Growth Platform for new-economy companies
NSE’s Innovators Growth Platform provides a dedicated public-market route for new-economy companies to raise funds and explore exits, under a framework overseen by SEBI.
SEBI relaxes Innovators Growth Platform rules in 2021
SEBI amended the IGP framework in 2021 to make it more accessible to startups and other companies, including by reducing the required holding period for eligible pre-issue investors and allowing greater flexibility in allocations and .
SEBI renames and revamps the Institutional Trading Platform as the Innovators Growth Platform
SEBI reworked the earlier platform and introduced the IGP name for innovation-led companies seeking public capital. The updated route was designed for businesses that might not yet have the operating history or financial profile required for a conventional listing. The change was intended to make the platform more usable for startups and other new-age enterprises.
SEBI establishes the Institutional Trading Platform as the regulatory framework for early-stage companies
SEBI developed the regulatory structure for listing innovative companies before they met conventional main-board requirements. The route focused on new-age businesses, including companies built around technology and intellectual property. Qualified investors were central to the platform’s original market-discipline model.