Sebi's Regulatory Overhaul: Transforming India's Market Landscape

The Securities and Exchange Board of India (Sebi) is set to discuss significant regulatory reforms, including relaxing IPO requirements, extending public shareholding timelines, and simplifying compliance for foreign investors. The board aims to attract large issuers to India by easing financial regulations and introducing the SWAGAT-FI framework for streamlined foreign investments.

The Securities and Exchange Board of India (Sebi) plans to deliberate on crucial regulatory changes at its meeting on Friday. These changes include easing minimum IPO requirements for substantial companies and extending the timeline to meet public shareholding norms, according to sources familiar with the developments.

Additionally, the board agenda incorporates simplifying compliance procedures for foreign portfolio investors and relaxing regulations for certain alternative investment funds. The board may also explore expanding the roles of rating agencies and assigning equity status to REITs and InvITs for increased market activity.

Under the leadership of Tuhin Kanta Pandey, this marks the third board meeting since he took office in March. Sebi is taking a strategic leap by encouraging large issuers to list in India, offering a new framework for streamlined foreign investments through the SWAGAT-FI system. The proposal seeks to unify registration across multiple investment routes, aiming to enhance India's appeal to global investors.

(With inputs from agencies.)