SEBI wants a better on-ramp for deeptech startups that are not ready for the main board

The problem in plain words

India has more deeptech, semiconductor, biotech and space startups than a few years ago, but many of them still struggle to list on the stock market. They often have patents and long research timelines before they make much revenue. The main board listing rules were written for companies that already sell products and report profits. SEBI's Innovators Growth Platform, or IGP, was meant to be a softer on-ramp for innovation-led companies. On 4 November 2026, SEBI said that on-ramp needs a full review.

In a press release numbered PR No.69/2026, the regulator constituted an 18-member working group to examine the IGP framework under the SEBI Issue of Capital and Disclosure Requirements Regulations, 2018. Moneycontrol, The Hindu BusinessLine, Business Standard and PTI all reported the same announcement the same day. The group is co-chaired by Srini Srinivasan, chairman of the Indian Venture and Alternate Capital Association, and Prashanth Prakash, a partner at Accel Partners.

Why the IGP exists

SEBI created the Innovators Growth Platform in 2019 by revamping an earlier Institutional Trading Platform. Moneycontrol notes that IGP is aimed at companies that use technology, intellectual property, biotechnology or other innovation-led capabilities. It is meant mainly for institutional, high-net-worth and accredited investors rather than retail investors. Companies can list with or without a public issue, and the minimum trading lot is Rs 2 lakh.

That design keeps everyday retail investors out of the most speculative early listings, while still giving research-heavy companies a public market path. The catch, SEBI itself now says, is that the startup world has changed. Enterprises in deeptech, biotechnology, semiconductors, space and other research-intensive sectors may have distinct financing needs and business models that the current rulebook does not fit well.

What the working group will examine

SEBI's terms of reference are unusually concrete. The panel must review eligibility and listing requirements, and test whether they work for research-stage, pre-revenue, IP-led and technology-intensive enterprises. It must review who can invest on IGP and on what terms, while keeping investor protection intact.

It will also review how IGP companies raise capital: public issues, offers for sale, pricing, allocation and minimum subscription. After listing, it will look at disclosure, governance, trading and continuing obligations. A separate item covers migration from IGP to the main board, including eligibility and process. The group is asked to benchmark India against international frameworks for innovative and growth-stage companies, then recommend amendments, including transitional measures.

Who sits on the panel

Besides the two co-chairs, SEBI named founders and operators from innovation-led companies, including Umakant Soni of Bharat.1AI, Kedar Upadhye of Biocon and Pawan Kumar Chandana of Skyroot Aerospace, alongside venture and private equity partners from Catamaran Ventures, 3one4 Capital, Ideaspring Capital and Kedaara Capital. Ex-officio seats go to nominees from the Department for Promotion of Industry and Internal Trade, the Institute of Chartered Accountants of India, the Institute of Company Secretaries of India, CII, the Association of Investment Bankers of India, and the chief regulatory officers of NSE and BSE. A SEBI official is member secretary.

SEBI says members may speak with startups, industry associations and other stakeholders to understand sector-specific needs. Recommendations will go back to SEBI for consideration. No deadline is stated in the release.

Why this matters for India's digital economy

Public markets have been carrying more of the funding story than venture capital in recent weeks. Jio Platforms' listing dwarfed October's startup cheque sizes, and listed digital companies from MapmyIndia to Go Digit and RateGain are now reporting quarterly numbers that investors can read in the open. Deeptech and pre-revenue firms mostly still cannot join that queue on the main board.

If the working group makes IGP workable for chip designers, space robotics firms and biotech platforms without watering down investor protection, India would have a clearer ladder: private venture rounds, then IGP for sophisticated investors, then a main board migration once revenues arrive. If the review stalls, those companies will keep waiting for scarce late-stage private capital or listing abroad.

What could still go wrong

A working group is not a new regulation. SEBI still has to accept recommendations, draft amendments and run consultations. Looser eligibility could invite weak listings if disclosure standards slip. Tighter investor gates could leave the platform empty. Migration rules that are too hard would strand companies on a thin secondary market.

For now, the signal is clearer than the outcome. SEBI has publicly admitted that the IGP rulebook may not match India's deeptech pipeline, and it has put founders, VCs and both big exchanges in the same room to rewrite it.