(source : ANI) ( Photo Credit : ani)
SEBI Rolls Out Big Changes to Boost IPOs, Investments, and Market Access in India
Mumbai, September 13: India’s market watchdog, the Securities and Exchange Board of India (SEBI), just greenlit a bunch of key reforms to make public offers, IPO allocations, and foreign investments smoother. These SEBI changes aim to cut red tape, draw in more players, and help companies hit the stock market faster amid rising global outflows.
For giant companies with a market cap over Rs 1 lakh crore, SEBI tweaked the Securities Contracts (Regulation) Rules, 1957. Now, these firms can list with a smaller public shareholding slice and take more time to reach the mandatory 25% minimum public shareholding (MPS). If their public float dips below 15% at listing, they need to bump it to 15% in five years and 25% in ten. Starting at 15% or higher? Just five years to hit 25%. The same relaxed timelines apply to even bigger players over Rs 5 lakh crore.
SEBI also updated the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, to shake up anchor investor rules for IPOs. Life insurance companies and pension funds join the party alongside mutual funds in the reserved anchor portion. The total anchor reservation jumps from one-third to 40% of the IPO size—one-third for mutual funds, the rest for insurers and pensions. Plus, SEBI eased the cap on anchor allottees, giving big foreign portfolio investors (FPIs) with multiple funds more room to play.
On the ease-of-doing-business front, SEBI simplified related party transaction (RPT) rules under the Listing Obligations and Disclosure Requirements (LODR). They added scale-based thresholds and easier disclosures to make life simpler for listed companies.
Foreign investors get a boost too. Retail schemes in International Financial Services Centres (IFSCs) with Indian sponsors can now register as FPIs. SEBI also launched the SWAGAT-FI framework to fast-track entry for trusted overseas players like sovereign wealth funds and pension funds.
These moves come at a time when Indian markets face international outflows, driven by high US tariffs, shaky profits, and stretched valuations. To keep mutual funds attractive, SEBI slashed the maximum exit load from 5% to 3%. They also rolled out new incentives for distributors to bring in women investors and folks from smaller B-30 cities.
In a smart tweak for real estate, SEBI now treats Real Estate Investment Trusts (REITs) as equity instruments for mutual fund investments. This could spark more participation and even pave the way for REITs in stock indices.
Alternative Investment Funds (AIFs) see changes too—SEBI dropped the minimum investment for Large Value Funds (LVFs) from Rs 70 crore to Rs 25 crore. They also created a fresh category for AI-focused funds with lighter regulations to fuel innovation.
To reach everyday investors better, SEBI plans local offices in major state capitals like Jaipur, Lucknow, Hyderabad, and Bengaluru. Finally, they tightened governance for market infrastructure institutions (MIIs), requiring at least two executive directors to handle compliance and risk oversight.
These SEBI reforms could supercharge India’s stock market growth, making it easier for companies to go public and investors to join in.
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