MONEY
SEBI relaxes norms for IPOs, eases entry for low-risk foreign investors
- IBJ Bureau
- Sep 13, 2025
Stock market regulator SEBI’s board has cleared significant reforms, focusing on IPO regulations, simplified entry for foreign investors and a new framework for anchor investors in public issues.
This was the third board meeting chaired by SEBI Chairman Tuhin Kanta Pandey, who had assumed office on March 1.
Among the proposals approved include relaxing the minimum IPO requirements for very large companies and also extending the timeline for them to meet minimum public shareholding norms.
The markets regulator has approved IPOs for larger companies at 2.5 per cent of the post-issue market capitalisation and allowed large companies up to 10 years to meet the 25 per cent public float requirement.
In its board meeting, the SEBI has approved a proposal to make it easier for low-risk foreign investors to participate in the Indian securities market with the introduction of a single-window access. This is aimed at simplifying compliance and enhancing the country’s attractiveness as an investment destination.
The SEBI has decided to revamp share-allocation framework for anchor investors in companies’ maiden public offers to enhance the attractiveness of IPOs for global funds.
Additionally, it has been decided to overhaul the governance framework of market infrastructure institutions, including stock exchanges, by mandating the appointment of two executive directors to bolster operational oversight.
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