BS EDIT: Sebi’s reforms signal a new phase for Indian markets

By Business StandardPublished On Jun 23, 2025

Startup-friendly moves

Sebi now allows founders to hold Esops before IPO filing, relaxes CCS-related lock-ins, and mandates demat shares for senior staff — easing startup listing

Reverse flipping enabled

Shares held by foreign VCs, AIFs, and public financial institutions now count towards promoter contribution — aiding India-bound listings

PSU delisting simplified

PSUs with 90% government holding can now delist more easily — a move expected to help five public firms

Co-investments streamlined

Category I and II AIFs can now set up co-investment vehicles (CIVs), fixing earlier conflicts and easing investor access

Reit and Invit clarity

Sebi excludes related-party holdings from “public” status and lets HoldCos offset negative cash flows before payouts

A broader clean-up

From IPOs to infrastructure funds, Sebi’s reforms aim to build deeper, more credible Indian capital markets