INSTITUTIONAL TRADING PLATFORM

Business Graph with arrow and coins showing profits and gains
Business Graph with arrow and coins showing profits and gains

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.Β  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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