INSTITUTIONAL TRADING PLATFORM

INSTITUTIONAL TRADING PLATFORM

The institutional trading platform (ITP) is a platform provided by SEBI that has made listing on the exchange possible without bringing the initial public offer (IPO).The merits of listing on ITP are-

• Small and medium enterprises,start ups e.t.c. can raise capital easily
• Informed investors like VCFs have easy entry and exit options from companies.
• Benefit of broad investor base along with good visibility
• Listing becomes cost effective
• Long term investors enjoy tax benefits

Some of the eligibility criteria for the company are-

Regulatory Criteria:

• The company,promoters or directors does not appear in the defaulters list of RBI as maintained by CIBIL.
• The company has no winding up petition admitted against it.
• The company within a period of 5 years before applying for getting listed has not been referred to Board for Industrial and Financial Reconstruction.
• No regulatory action has been taken against the company,directors or promoters within a period of 5 years before applying for listing by RBI,MCA e.t.c.

Exchange Criteria:

• The company should either have net tangible assets of min.  1 Cr. Or net income of Rs.50 lacs as per the current audited financial reports.
• In the preceding one year from date of applying for getting listed on ITP segment,the company has made no change in its promoters.
• Compulsory signing with both depositories of the tripartite agreement.

Financial Criteria:

• In any previous financial year,the paid up capital of company has not exceeded Rs. 25 crore.
• The company should have one full year’s audited financial statements at time of applying of the preceding financial year.
• In any previous financial years,revenue of company has not exceeded Rs. 100 crore and not more than 10 years have been passed from day of its incorporation.

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