“Therefore the listing can be done without an IPO and the expenses associated with it. While such companies are listed on the ITP they will not be permitted to raise capital, though they can continue to make private placements,” it said.

Further, the market watchdog said that listing on ITP by start-ups and SMEs is expected to offer their existing investors better chances to find alternate buyers than if they search using their own network in the investment community.

“Standardised norms of entry for companies, eligibility criteria, continuous disclosure requirements, simplified exit rules and corporate governance norms will be prescribed,” SEBI said.

Meanwhile, angel funds are required to have a corpus of at least 10 crore and minimum investment by an investor should be 25 lakh. “Further, the continuing interest by sponsor/manager in the angel fund shall be not less than 2.5 per cent of the corpus or 50 lakh, whichever is lesser,” SEBI said.

Among others, investment in a company by an angel fund should not be less 50 lakh and not more than 5 crore.

Also, this investment should be held for a period of at least three years.

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