Framework for the process of accreditation of investors for the purpose of Innovators Growth Platform

SEBI/HO/CFD/DIL2/CIR/P/2019/67 · 2019-05-22 · SEBI Corporation Finance Department

Summary

This circular establishes the framework for accrediting investors for the Innovators Growth Platform (IGP) based on specific financial thresholds. It mandates that Stock Exchanges and Depositories verify investor eligibility and maintain accreditation data for a validity period of three years. Merchant bankers are required to perform due diligence on Accredited Investors during the IGP listing application process.

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Accredited Investors (AIs) for the limited purpose of Innovators Growth Platform (“IGP”), are investors whose holding in the Issuer Company, is eligible for the computation of at least 25% of the pre-issue capital in accordance with Regulation 283.(1) of the SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2018 (“ICDR Regulations”)

Any individual with total gross income of ₹ 50 lakhs annually and who has minimum liquid net worth of ₹ 5 crores; or

Any body corporate with net worth of ₹ 25 crores

The Stock Exchanges /Depositories shall be responsible for verification and maintenance of the AI data

The accreditation granted by the Stock Exchange/Depository shall be valid for a period of three years from the date of issue of such accreditation unless the AI becomes ineligible due to change in his/her/its financial status in which case such AI shall inform the Stock Exchange/Depository of such ineligibility

At the time of application by a Company for listing on IGP, the merchant bankers shall ensure due diligence with regard to eligibility of AIs and that their holding in the Company desirous of listing on IGP is in accordance with the Regulation 283.(1) of the ICDR Regulations

Implement the procedure for accreditation within 45 days from the date of issue of this Circular

Disseminate the provisions of this Circular on their website

Communicate to SEBI, the status of the implementation of the provisions of this circular

Exchanges/Depositories are advised to make necessary amendments to the relevant bye-laws, rules and regulations

The same shall be calculated as follows: Capital + Free Reserves Less: non-allowable assets (a) Fixed assets (b) Pledged Securities (c) Non-allowable securities (unlisted securities) (d) Doubtful debts and advances* (e) Prepaid expenses, losses (f) Intangible assets (g) 30% value of marketable securities

Declaration from investor which will state that: (i) he/she/it, is not a wilful defaulter... (ii) he/she/it, is not a fugitive economic offender... (vii) that the submissions made to the Exchange/Depository are true and correct...

Source: SecMarx — Framework for the process of accreditation of investors for the purpose of Innovators Growth Platform. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.