SEBI Eases IPO Rules to Boost Mega Listings

The Securities and Exchange Board of India (SEBI) has relaxed IPO rules for large companies, allowing them up to 10 years to meet public shareholding norms. This change aims to benefit mega IPOs like Reliance Jio Infocomm and NSE by reducing the immediate equity dilution pressure and enhancing market liquidity.

The Securities and Exchange Board of India (SEBI) announced significant changes in initial public offering (IPO) regulations, specifically targeting large corporations. Under the new rules, companies with market capitalisations ranging from Rs 50,000 crore to over Rs 5 lakh crore will find it easier to comply with public shareholding norms, with extended timelines of up to 10 years.

SEBI's decision is expected to benefit high-profile IPOs, including those of giants like Reliance Jio Infocomm and the National Stock Exchange. By easing the requirements, SEBI aims to alleviate the immediate burden of large equity dilutions while ensuring that these companies gradually increase their public shareholding percentage.

This regulatory reform further enhances investor participation by revamping the anchor investor framework. SEBI has increased the number of permissible anchor investors for IPOs with substantial anchor portions, thereby promoting diversified and robust anchor books aligned with global standards. This move promises to enhance market liquidity and investor confidence.

(With inputs from agencies.)