Will SEBI's Board Meeting Revise IPO Norms and Anchor Allocation Rules?
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Synopsis
Get ready for potential changes in IPO regulations as SEBI prepares for a crucial board meeting. Key topics on the agenda include relaxed stake dilution norms for large companies and new allocation rules for anchor investors. Stay tuned for updates that could reshape the capital markets landscape!
Key Takeaways
- SEBI's board meeting set for Friday.
- Relaxed stake dilution norms under consideration.
- New allocation rules for anchor investors may be introduced.
- Potential extension of deadlines for public shareholding compliance.
- Expansion of anchor investor pool expected.
New Delhi, Sep 12 (NationPress) The Securities and Exchange Board of India (SEBI), which oversees capital markets, is poised to evaluate significant regulatory reforms during its board meeting on Friday. This includes easing stake dilution rules for major corporations and modifying the allocation guidelines for anchor investors involved in IPOs.
SEBI is contemplating revisions to the stake dilution criteria, allowing larger enterprises to initiate smaller initial public offerings. Additionally, the regulator may extend the timeline for companies to meet the minimum public shareholding benchmarks.
For companies with post-issue market capitalizations over Rs 5 lakh crore, a minimum float of Rs 15,000 crore plus 1 percent may be mandated, with a floor of 2.5 percent public float.
Firms valued between Rs 1 lakh crore and Rs 5 lakh crore could be obligated to issue at least Rs 6,250 crore plus 2.75 percent. Depending on their shareholding structures, they might have up to 10 years to fulfill the minimum public shareholding requirements, as reported.
The board intends to broaden the anchor investor base for IPOs, potentially raising reserved allocations from 33 percent to 40 percent by including insurance and pension funds alongside mutual funds. Moreover, for IPOs sized between Rs 250-Rs 500 crore, the number of allowed anchor allottees could rise from 25 to 30.
The agenda also likely includes initiatives to streamline compliance for foreign portfolio investors (FPIs), relax rules for accredited investors in selected alternative investment funds (AIFs), expand the operational scope for credit rating agencies, and confer equity status to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
Furthermore, multiple reports indicate that the SEBI board may deliberate and sanction a new threshold-based framework to assess the materiality of related party transactions (RPTs), aligning compliance demands with the turnover of listed companies.
SEBI is also expected to issue a consultation paper within a month regarding the gradual discontinuation of weekly futures and options (F&O) contracts.
The regulator seeks to transition to monthly expiries with a structured transition plan and may consider introducing same-day expiries across stock exchanges.
Earlier this week, SEBI revealed that it had revised its regulations to permit promoters to retain employee stock options (ESOPs) granted at least one year before filing IPO documentation.
Point of View
The upcoming SEBI board meeting represents a pivotal moment for the Indian capital markets. The proposed regulatory changes could enhance the attractiveness of IPOs, encourage larger companies to go public, and ultimately benefit investors. As always, NationPress stands firmly with the advancement of transparent and effective market regulations.
NationPress
12/09/2025
Frequently Asked Questions
What are the proposed changes in SEBI's board meeting?
SEBI is considering relaxed stake dilution norms for large companies and new allocation rules for anchor investors in IPOs, among other regulatory changes.
How will the changes affect IPOs?
The proposed changes could enable larger companies to launch smaller IPOs and attract more anchor investors, enhancing market liquidity.
What is the timeline for companies to meet public shareholding requirements?
Companies may be given up to 10 years to comply with the minimum public shareholding mandate based on their shareholding structures.
What other discussions are expected at the SEBI meeting?
The agenda includes compliance simplifications for foreign investors, rules for accredited investors, and potential updates on related party transactions.
When can we expect a consultation paper from SEBI?
SEBI is expected to release a consultation paper within a month regarding the phasing out of weekly F&O contracts.
