SEBI brings big relief to big companies with new IPO rules
In a major boost for companies eyeing initial public offerings (IPOs), India’s market watchdog SEBI has rolled out relaxed norms on minimum public shareholding (MPS). This comes straight from their latest board meeting, making it easier for large firms to raise funds without the usual rush.
Picture this: If your company has a market cap between Rs 50,000 crore and Rs 1 lakh crore, you now get breathing room. Instead of hitting the 25% public shareholding mark in just three years, you can aim for 15% within five years and the full 25% in 10 years. Right now, the pressure to dilute big stakes quickly often tanks share prices, but these changes should ease that pain and cut down on special pleas to SEBI for exemptions.
Experts are cheering this move, saying it streamlines fundraising and keeps the market humming without unnecessary stress.
Boost for REITs and InVITs
SEBI isn’t stopping there. They’ve given real estate investment trusts (REITs) and infrastructure investment trusts (InVITs) a fresh status as equity instruments. This tweak opens the doors wider for mutual funds to pour in money, drawing more everyday investors into these promising areas. If you’ve been eyeing stable real estate or infra plays, this could make them even more accessible.
Stronger oversight for stock markets
To keep things clean and transparent, SEBI has tightened governance rules for stock exchanges and depositories. These updates aim to sharpen oversight and build trust in how our markets run, ensuring fair play for everyone involved.
Easier path for investment advisors
Aspiring investment advisors and research analysts, take note! SEBI has simplified the eligibility game. Now, any graduate can jump in, as long as they clear the mandatory NISM certification exam. They’ve also eased up on paperwork like credit reports, net worth proofs, and balance sheets, making the process less of a headache.
New portal for foreign investors
Finally, SEBI is making India more investor-friendly with a shiny new website called “India Market Access.” Tailored for foreign portfolio investors (FPIs), this one-stop portal dishes out all the key regulatory info and steps to dive into Indian stocks and markets. It’s a smart step to attract global cash and supercharge our economy.
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