What Are the Key Takeaways from SEBI's Recent Regulatory Changes?
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Synopsis
SEBI's recent regulatory changes aim to simplify IPO and mutual fund norms while easing entry requirements for advisory certifications. Discover how these reforms impact large corporations and international investors alike.
Key Takeaways
- Relaxed listing norms for companies with market caps over Rs 50,000 crore.
- Extended timelines for minimum public shareholding to 10 years.
- 40% allocation for anchor investors in IPOs now includes pensions and insurance.
- New AI-only category in alternative investment funds with reduced ticket sizes.
- Launch of 'India Market Access' portal for foreign investors.
Mumbai, Sep 13 (NationPress) The Securities and Exchange Board of India (SEBI) has greenlit a series of regulatory reforms aimed at streamlining IPO guidelines and foreign portfolio investment regulations, while also easing the requirements for advisory certifications.
Among the significant changes, firms with a market capitalization exceeding Rs 50,000 crore will benefit from relaxed listing standards, enabling them to maintain a smaller float size of Rs 1,000 crore or at least 8 percent of the post-issue market capitalization.
Additionally, the timeline for meeting the 25 percent minimum public shareholding requirement has been extended to 10 years. Companies across various market capitalizations will enjoy proportional relaxations.
The allocation for anchor investors in IPOs has been raised to 40 percent, now encompassing insurance and pension funds in the reserved quota alongside mutual funds.
SEBI has also lowered thresholds for related-party transactions, thereby easing compliance burdens for larger firms.
A new category for accredited investors (AI) in alternative investment funds has been introduced, with the minimum ticket size for Large Value Funds reduced from Rs 70 crore to Rs 25 crore, according to a SEBI release.
Sovereign wealth funds and pension schemes will benefit from the new SWAGAT-FI framework, which offers 10-year registrations, a single demat account, and exemptions from the FVCI rule that mandates 66 percent of corpus in unlisted equity.
Changes to mutual fund rules include a reduction in exit loads from 5 percent to 3 percent and enhanced incentives for distributors who engage women and B-30 investors.
Investment advisers and research analysts will face fewer barriers to entry, allowing graduates from any field to obtain NISM certifications. Requirements for documentation like address proof and CIBIL reports are being eliminated.
Moreover, SEBI has reclassified REITs as equity instruments, making them eligible for equity indices and mutual fund equity allocation limits.
To facilitate access for international investors, SEBI has launched a new portal named 'India Market Access' for foreign portfolio investors (FPIs). This website will offer comprehensive regulatory and procedural information for those interested in investing in Indian markets.
Point of View
I must emphasize that SEBI's latest regulatory reforms reflect a progressive approach towards enhancing the investment climate in India. These changes not only cater to large corporations but also open doors for international investors, marking a significant step forward for the Indian economy.
NationPress
08/11/2025
Frequently Asked Questions
What changes has SEBI made regarding IPO norms?
SEBI has simplified IPO norms, allowing larger companies to have relaxed listing requirements and extended timelines for public shareholding.
How does the new SWAGAT-FI framework benefit investors?
The SWAGAT-FI framework offers 10-year registrations and exemptions from certain rules, making it easier for sovereign wealth funds and pension funds to invest.
What are the implications of reclassifying REITs?
Reclassifying REITs as equity instruments makes them eligible for equity indices, broadening their investment appeal.
