India’s securities regulator has eased conditions for large public listings. The Securities and Exchange Board of India (SEBI) now allows companies with post-listing market capitalisation above Rs 5 trillion to launch IPOs with only 2.5% of their equity on offer, down from 5%.
The new norms also extend deadlines for meeting minimum public shareholding (MPS). Firms with an initial public float below 15% must raise it to 15% within five years, then to 25% within ten years. If the float is at least 15% at listing, the 25% target must be met within five years.
SEBI has introduced a single-window clearance system for so-called low-risk foreign investors, including sovereign wealth funds, central banks and regulated mutual funds. The move aims to reduce paperwork and compliance burdens.
Other changes approved include raising anchor investor reservation in IPOs to 40%, with allocations for insurance companies and pension funds alongside mutual funds. SEBI also simplified disclosure rules for smaller transactions between related parties.
The reforms are expected to speed up IPO activity, support planned large listings (such as Reliance Jio and the National Stock Exchange), and make India more attractive to global institutional investors.
