Mumbai, Sep 11 (PTI) – The Securities and Exchange Board of India (SEBI) is expected to take up a series of regulatory reforms at its upcoming board meeting scheduled for Friday.

According to sources, the agenda includes easing IPO norms for very large companies by reducing minimum public offer requirements and extending timelines to comply with minimum public shareholding rules. The board is also likely to consider steps such as simplifying compliance for foreign portfolio investors (FPIs), providing regulatory relaxations for accredited investors in select alternative investment funds (AIFs), widening the role of credit rating agencies, and granting equity-like status to REITs and InvITs.

 

Many of these proposals have already undergone public consultation, reflecting SEBI’s broader intent to fine-tune the market regulatory framework. This will also be the third board meeting under Chairman Tuhin Kanta Pandey, who took charge on March 1.

 

One of the major proposals expected for approval aims to encourage large corporates to list in India. Under the plan, companies with a market capitalisation of ₹50,000 crore–₹1 lakh crore would need to bring a minimum public offer (MPO) of ₹1,000 crore, amounting to at least 8% of post-issue capital. They would then be required to achieve 25% public shareholding within five years, compared to the current three-year timeline.

 

For even larger firms with a market capitalisation between ₹1 lakh crore and ₹5 lakh crore, the MPO threshold would be set at ₹6,250 crore with at least 2.75% of post-issue capital. The timeframe to meet the 25% public shareholding norm could be stretched up to 10 years, depending on the level of public float.