Markets regulator Sebi on Thursday said it has suggested relaxations in norms to encourage listing of start-ups, including reducing the holding period for pre-issue capital and allowing discretionary allotment to all eligible investors.

The changes have been proposed to the framework for listing on Innovators Growth Platform, Sebi said.

Other proposals include providing differential voting rights (DVR) to promoters, retaining superior voting rights (SR) for existing institutional investors holding over 10 per cent of capital, and easing delisting requirements as well as takeover norms.

The market regulator has issued a consultation paper in this regard and sought suggestions from the public till January 11.

Sebi has suggested reducing the period of holding of 25 per cent of pre-issue capital of the issuer company by eligible investors to one year from the current norm of two years.

On the lines of provisions for listing of companies on the main board, Sebi has proposed that “up to 60 per cent portion of the issue size may be allocated on a discretionary basis, prior to issue opening, to all eligible investors... provided there will be a lock in of 30 days on such shares.”

Issuer companies seeking listing under IGP should be allowed to issue DVR and SR equity shares to promoters and founders, Sebi suggested.

The market regulator also proposed that there should be continuation of special rights such as board seat and veto or affirmative voting rights for existing institutional investors holding in excess of 10 per cent of capital.

Another proposal is to exempt Alternative Investment Fund (AIF) Category II investors from post issue lock-in requirement of six months, subject to certain conditions.