Institutional Trading Platform (ITP)
SEBI has notified new norms for listing of small and medium enterprises (SMEs) including the start-up companies
on Institutional Trading Platform (ITP) on stock exchanges without an initial public offering. This will allow SMEs
to list themselves on stock exchanges without raising funds from the public, which in turn will help both the
investor and the small companies.
In the modified rules to permit listing of start-ups and SMEs in ITP without having to make an IPO, a minimum
amount for trading or investment on the ITP would be Rs. 10 lakh. This move will provide easier exit options for
entities such as Angel Investors, Venture Capital Funds and Private Equities. Besides, the move would provide
better visibility, wider investor base and greater fund raising capabilities to such companies. SEBI notified that
the company would not make an IPO while its specified securities are listed on ITP, but can raise capital through
private placement or rights issue without an option for renunciation of rights. An SME will be eligible to list on the
ITP, in case the company, its promoter, director, Group Company does not appear in the defaulters list of Reserve
Bank and there is no winding up petition against the firm.
Dedicated Debt Segment on Stock Exchanges
SEBI vide circular dated January 24, 2013 prescribed guidelines for providing dedicated debt segment on stock
exchanges. Further, SEBI vide circular dated September 12, 2013 prescribed the Risk Management Framework
for Dedicated Debt Segment on Stock Exchanges. The debt segment shall offer separate trading, clearing,
settlement, reporting facilities and membership to deal in :
(i) “debt securities” as defined in Securities and Exchange Board of India (Issue and Listing of Debt
Securities) Regulations, 2008;
(ii) Government Securities, Treasury Bills, State Government loans, SLR and Non-SLR Bonds issued by
Financial Institutions, municipal bonds, single bond repos, basket repos and CBLO kind of products
subject to RBI approval, where required;
(iii) Securitized debt instruments as defined in SEBI (Public Offer and Listing of Securitised Debt
Instruments)Regulations, 2008;
(iv) any other debt instruments as may be specified from time to time by the competent authority.
SEBI has notified new norms for listing of small and medium enterprises (SMEs) including the start-up companies
on Institutional Trading Platform (ITP) on stock exchanges without an initial public offering. This will allow SMEs
to list themselves on stock exchanges without raising funds from the public, which in turn will help both the
investor and the small companies.
In the modified rules to permit listing of start-ups and SMEs in ITP without having to make an IPO, a minimum
amount for trading or investment on the ITP would be Rs. 10 lakh. This move will provide easier exit options for
entities such as Angel Investors, Venture Capital Funds and Private Equities. Besides, the move would provide
better visibility, wider investor base and greater fund raising capabilities to such companies. SEBI notified that
the company would not make an IPO while its specified securities are listed on ITP, but can raise capital through
private placement or rights issue without an option for renunciation of rights. An SME will be eligible to list on the
ITP, in case the company, its promoter, director, Group Company does not appear in the defaulters list of Reserve
Bank and there is no winding up petition against the firm.
Dedicated Debt Segment on Stock Exchanges
SEBI vide circular dated January 24, 2013 prescribed guidelines for providing dedicated debt segment on stock
exchanges. Further, SEBI vide circular dated September 12, 2013 prescribed the Risk Management Framework
for Dedicated Debt Segment on Stock Exchanges. The debt segment shall offer separate trading, clearing,
settlement, reporting facilities and membership to deal in :
(i) “debt securities” as defined in Securities and Exchange Board of India (Issue and Listing of Debt
Securities) Regulations, 2008;
(ii) Government Securities, Treasury Bills, State Government loans, SLR and Non-SLR Bonds issued by
Financial Institutions, municipal bonds, single bond repos, basket repos and CBLO kind of products
subject to RBI approval, where required;
(iii) Securitized debt instruments as defined in SEBI (Public Offer and Listing of Securitised Debt
Instruments)Regulations, 2008;
(iv) any other debt instruments as may be specified from time to time by the competent authority.
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