Sebi Unveils IPO Reforms, Eases Foreign Investor Entry in Bold Move

The Securities and Exchange Board of India (Sebi) has unveiled significant regulatory reforms, focusing primarily on initial public offerings (IPOs), the entry of foreign investors, and the governance structures of market infrastructure institutions. These changes are part of an ambitious agenda to enhance India's investment appeal.

Friday's board meeting marked the third presided over by Sebi chairman Tuhin Kanta Pandey, who took office on March 1. Among the key reforms, Sebi plans to relax minimum IPO requirements for large companies and extend the timeline for them to comply with public shareholding norms.

Sebi's new strategy includes a single window access for low-risk foreign investors and revamped share allocation for anchor investors, thereby reinforcing the attractiveness of IPOs for global funds. Additionally, Sebi mandates the appointment of two executive directors to strengthen the market infrastructure's governance.