Bangalore: Market regulator SEBI on Tuesday allowed start-ups and small and medium enterprises (SMEs) to get listed on bourses without making an initial public offering (IPO), while new rules have been put in place for angel investors.

To ensure that investments are genuine, angel investors would be allowed to put in their money in only firms incorporated in India and that are not more than three years old.

During its meeting in Mumbai on Tuesday, SEBI board approved the amendments of rules to permit listing of start-ups and SMEs in Institutional Trading platform (ITP) without having to make an IPO.

Lack of exit opportunities for existing investors and restricted access to new investors is a major problem faced by start-ups and SMEs.

SEBI said the proposal has been approved with a “view to provide easier exit options for informed investors like Angel Investors, VCFs and PE etc. to provide better visibility, wider investor base and greater fund raising capabilities to such companies”.

According to SEBI, the minimum amount for trading or investment on the ITP will be 10 lakh. Such companies would also be exempted from the requirements of having to offer up to 25 per cent of its shareholding to public through an offer document in order to get listed.

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