Sebi board approves major market reforms; eases IPO rules for large companies, strengthens foreign investor access

The Securities and Exchange Board of India (Sebi) on Friday approved a series of reforms aimed at strengthening India’s capital markets, including relaxed IPO norms for very large companies, streamlined access for foreign investors, and a revised framework for anchor investors in public issues.

The decisions came during the third board meeting chaired by Sebi chief Tuhin Kanta Pandey since he assumed office on March 1.Under the new rules, very large companies will have relaxed minimum IPO requirements and extended timelines to comply with minimum public shareholding norms, making it easier for them to access the market, PTI reported.To attract foreign participation, Sebi introduced a single-window facility for low-risk investors, simplifying compliance and enhancing the appeal of Indian securities as an investment destination.The regulator also revamped the share allocation framework for anchor investors in companies’ maiden public offerings, aiming to make IPOs more attractive to global funds.In a separate move to strengthen governance, Sebi mandated the appointment of two executive directors in market infrastructure institutions, including stock exchanges, to improve operational oversight and risk management.