New Delhi : SEBI IPO norms will undergo review at the regulator’s upcoming board meeting on Friday, with key changes including relaxed stake dilution rules for large companies and new anchor investor allocation guidelines.
SEBI plans to permit large firms to launch smaller initial public offerings by easing stake dilution norms. The regulator also considers extending deadlines for companies to comply with minimum public shareholding requirements.
Companies with post-issue market capitalisations above Rs 5 lakh crore must maintain a minimum float of Rs 15,000 crore plus 1 per cent, subject to a minimum of 2.5 per cent public float. Firms valued between Rs 1 lakh crore and Rs 5 lakh crore will need to issue at least Rs 6,250 crore plus 2.75 per cent. Depending on their shareholding levels, they could receive up to 10 years to meet the minimum public shareholding mandate.
The board intends to expand the anchor investor pool for IPOs, increasing reserved allocations from 33 per cent to 40 per cent by adding insurance and pension funds to the existing mutual fund base. For IPOs with issue sizes between Rs 250–500 crore, SEBI proposes raising the number of permitted anchor allottees from 25 to 30.
The meeting may also cover steps to simplify compliance for foreign portfolio investors (FPIs), relax rules for accredited investors in certain alternative investment funds (AIFs), broaden the scope of rating agency activities, and grant equity status to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
Reports indicate that SEBI will likely approve a new threshold-based system to determine the materiality of related party transactions (RPTs), aligning compliance requirements with listed entities’ turnover.
SEBI may release a consultation paper within a month on phasing out weekly futures and options (F&O) contracts. The regulator plans to transition to monthly expiries and may introduce same-day expiry across stock exchanges.
Earlier this week, SEBI amended rules to allow promoters to retain employee stock options (ESOPs) granted at least one year before filing IPO papers.
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