Sebi board clears IPO rule relaxations, new norms for foreign investors

Stock market regulator Sebi's board on Friday cleared significant reforms, focusing on IPO regulations, simplified entry for foreign investors, and a new framework for anchor investors in public issues.

This was the third board meeting chaired by Sebi chief Tuhin Kanta Pandey who assumed office on March 1.

Among the proposals approved included relaxing the minimum IPO requirements for very large companies, and also extending the timeline for them to meet minimum public shareholding norms.

In its board meeting, Sebi approved a proposal to make it easier for low-risk foreign investors to participate in the Indian securities market with the introduction of a single window access. This is aimed at simplifying compliance and enhancing the country's attractiveness as an investment destination.

To enhance the attractiveness of IPOs for global funds, Sebi decided to revamp share-allocation framework for anchor investors in companies' maiden public offerings.

Additionally, it has been decided to overhaul the governance framework of market infrastructure institutions including stock exchanges by mandating the appointment of two executive directors (EDs) to bolster operational oversight.