Institutional trading platform (ITP) trading platform

1. INSTITUTIONAL TRADING
PLATFORM
AN INITIATIVE BY SEBI

2. SEBI (Listing of Specified Securities on Institutional Trading Platform)
Regulations, 2013 (“ITP Regulations”)
A
New Chapter to the SEBI (Issue of Capital and Disclosure Requirements)
Regulations, 2009 (“ICDR Regulations”).

3. Why a new Trading Platform
 To allow small and medium enterprises (SMEs) to
enlist their specified securities,
 To subsume the lengthy process of IPO for SMEs
and startups wider visibility and will allow them to
raise capital through trading of specified,
 easier exit option for informed investors, provide
better visibility, wide investor base and greater fund
raising capabilities to start-ups and SMEs.

4. Eligibility Criteria
Any SME or startup (Company)
 not listed any securities in any stock exchange
in India.
 Not a willful defaulter, or a sick company.
 Revenues does not exceed 100 crores in any of the
previous financial years, or paid up capital of the
company is not more than 25 crores.
 minimum net tangible asset of rupees one
crore or the net income of the company is not
less than rupees 50 lakh
Continue..

5.  no change in the promoters of the company
in last one year from the date of filing of
application
 not be more than 10 years from the date of
incorporation and it should have audited financial
statement for the previous financial year.

6. Some Listing Requirements
 To file an information document containing certain
specific disclosures
 At least 20% of the post listing capital is required to
be held by the promoters of the SME which shall
be locked-in for a period of three years from the
date of listing on the ITP
 minimum trading lot on ITP will be Rupees ten
Lacs.

7. Private
Placeme
nt
Right
Issue
 in-principle permission of the
stock exchange & approval of
the shareholders of the
company, disclosures to be
made in an explanatory
statement to the shareholders
and complete the allotment
within two months of obtaining
such approval.
 in-principle permission of
the stock exchange & send
letter of offer to the
shareholders through
registered post or speed
post or through electronic
mail and also publish such
notice in the website of the
company and the stock
exchange.

8. Exit Scheme
 its shareholders approve such exit through
a special resolution with 90% of total votes
and the majority of non-promoter votes in
favour of such proposal,
 the recognized stock exchange where its
shares are listed approves such exit.

9. Conclusion
 The new platform aid SMEs in getting access
to capital as well as wider visibility.
 ITP Regulations are framed with the intention
of allowing easier exit options for the informed
investors who risk their capital to support
SMEs.