SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure
Institution: Ministry of Finance
On 12 September 2025, SEBI held its board meeting and approved a suite of reforms aimed at easing capitalβmarket regulations, especially for large IPOs, improving investor participation, and simplifying governance norms. Key decisions include relaxing Minimum Public Shareholding (MPS) norms for very large issuers, extending timelines for compliance, introducing scale-based thresholds for IPO size and post-issue public float, reclassifying REITs as equity, expanding the anchor investor pool (adding insurance and pension funds alongside mutual funds), simplifying entry for Foreign Portfolio Investors via a single-window mechanism, and modifying rules for mutual funds, alternative investment funds (AIFs), and market infrastructure governance.
These reforms are designed to boost market liquidity, widen investor base (both domestic institutional and foreign), and make IPOs more feasible and efficient for large firms. They also aim to align regulatory requirements with market capacities, thus improving ease of doing business in the securities market. The changes may influence how companies plan for listing, affect portfolio allocations of institutional investors, and require updates in regulatory oversight and compliance systems.
Relevant Question for Policy Stakeholders:
How will SEBI ensure that the relaxed norms for large IPOs and extended timelines for public shareholding donβt compromise investor protection and market stability, and what supervisory mechanisms will accompany these reforms to monitor their impact?
Follow the full news here: https://www.sebi.gov.in/media-and-notifications/press-releases/sep-2025/sebi-board-meeting_96601.html