NEW DELHI– The Securities and Exchange Board of India (SEBI) on Friday approved sweeping regulatory changes designed to ease fundraising pressure on large companies preparing to go public, while also broadening investment access for institutions and foreign investors.
In a major shift, SEBI relaxed minimum public shareholding (MPS) requirements for firms with market capitalizations between Rs 50,000 crore and Rs 1 lakh crore. Under the new rules, such companies will be required to meet 15 percent MPS within five years of listing and 25 percent within 10 years, compared to the current requirement of reaching the 25 percent threshold within three years.
Market experts said the move will make IPO fundraising less onerous, allowing companies to avoid immediate large-scale dilution that can weigh on stock performance. The changes also reduce the need for firms to apply for individual exemptions from SEBI.
SEBI also approved the classification of real estate investment trusts (REITs) and infrastructure investment trusts (InVITs) as equity instruments, a step expected to make it easier for mutual funds to invest and to boost retail participation in these asset classes.
Additional measures include revised governance norms for stock exchanges and depositories aimed at enhancing transparency, as well as looser eligibility requirements for investment advisors and research analysts. Going forward, graduates in any discipline can apply, provided they clear the mandatory NISM certification. SEBI also simplified requirements for credit reports, net worth, and asset-liability statements.
To strengthen India’s appeal for global investors, SEBI launched “India Market Access,” a dedicated portal for foreign portfolio investors offering detailed guidance on regulatory and procedural requirements for investing in Indian markets.
The regulatory overhaul underscores SEBI’s efforts to balance market integrity with flexibility, making it easier for large corporations to raise capital while broadening opportunities for domestic and international investors. (Source: IANS)
