Sebi’s new reforms aim to streamline mega IPOs

Sebi’s new reforms aim to streamline mega IPOs by reducing the retail investor quota from 35% to 25% and increasing the allocation for qualified institutional buyers (QIBs) from 50% to 60% for large IPOs (over Rs 5,000 crore). Additionally, Sebi proposes to ease mandatory dilution norms, potentially halving the minimum public shareholding requirement from 5% to 2.5% for companies valued over Rs 1 trillion, benefiting large firms like Reliance Jio and NSE. According to Madhurima Mukherjee Saha, Partner at JSA Advocates & Solicitors, Sebi’s track record of amending rules as needed is beneficial, and a case-by-case exemption power for Sebi would aid in future scenarios requiring flexibility, although changes to the Securities Contract Regulation Rules (SCRR) would be required for lower dilution. These reforms are expected to boost institutional participation, reduce operational strain, and provide more flexibility for mega-cap companies to list. Read Article