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Sebi to hold key board meet on Friday; With IPO, FPI & large institution reforms on agenda that could reshape market rules
Sebi board meeting
The Securities and Exchange Board of India (Sebi) is set to hold a crucial board meeting on Friday, with several reform proposals on the agenda that could reshape rules for IPOs, foreign portfolio investors (FPIs), and large institutions. This will be the third board meeting chaired by Tuhin Kanta Pandey since he took charge in March.
The reforms are designed to ease compliance, attract more global capital, and encourage mega companies to list domestically. Many of the proposals have already been released for public consultation, signalling Sebi’s intent to modernise its regulatory framework.
Relaxed IPO Norms for Large Companies
Companies with a market value exceeding Rs 50,000 crore may be allowed to float smaller IPOs initially, easing immediate dilution pressures. These firms could also get up to five years to meet the 25% minimum public shareholding requirement.
Simplified Entry for Low-Risk FPIs
Sebi is expected to clear a new fast-track framework called SWAGAT-FI (Single Window Automatic and Generalised Access for Trusted Foreign Investors). The system will ease registration for sovereign wealth funds, central banks, pension funds, and other highly regulated entities that already manage more than Rs 81 lakh crore in Indian markets.
Anchor Book Quota for Insurers and Pension Funds
The regulator is likely to introduce a dedicated quota for domestic insurers and pension funds in IPO anchor books, similar to the existing allocation for mutual funds. The move is aimed at boosting long-term domestic participation in large public offerings.
Lower Minimum Stake Sale in Mega IPOs
For companies valued above Rs 5 lakh crore, the minimum stake sale through IPOs could be reduced to 2.5% from the current 5%. The proposal, already under consultation, could directly benefit big-ticket listings such as Jio Platforms and the NSE. For firms valued between Rs 1 lakh crore and Rs 5 lakh crore, Sebi has suggested pegging dilution between 2.5% and 2.75%.
Reforms in AIFs and Rating Agencies
Broader changes in the alternative investment fund (AIF) ecosystem and credit rating industry are also on the table. These include easing rules for accredited investors in certain AIFs and allowing rating agencies to expand into diversified service areas.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
September 12, 2025, 10:37 IST
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