NextFin news, The Securities and Exchange Board of India (SEBI) board met on Friday, September 12, 2025, in Mumbai to deliberate on several key regulatory reforms affecting IPO norms, foreign investment, and market infrastructure.
The meeting focused on proposals to relax IPO requirements for companies with large market capitalizations. Under the proposed framework, firms with market values between Rs 50,000 crore and Rs 1 lakh crore would be allowed to launch smaller IPOs initially, with a minimum public offer (MPO) of Rs 1,000 crore and at least 8% of post-issue capital. These companies would have five years to meet the minimum public shareholding (MPS) requirement of 25%, extending the current three-year period.
For companies valued between Rs 1 lakh crore and Rs 5 lakh crore, the board considered an MPO of Rs 6,250 crore and at least 2.75% of post-issue capital, with up to 10 years to meet MPS targets. Firms above Rs 5 lakh crore in market capitalization would face a minimum IPO size of Rs 15,000 crore and must dilute at least 2.5% of their stake.
Additionally, SEBI discussed implementing a single-window clearance system for foreign portfolio investors (FPIs) to streamline registration and compliance processes. This reform aims to simplify foreign investment procedures and enhance ease of doing business in Indian capital markets.
The board also reviewed changes related to alternative investment funds (AIFs) and market infrastructure regulations, though specific details on these were not disclosed at the time of the meeting.
These proposals were reported by multiple sources including The Financial Express and News18, citing official SEBI communications and market analysts. The reforms are intended to facilitate greater market participation by easing regulatory burdens on large firms and foreign investors.
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