Archive · 25 Sep 2025
SEBI Reforms to Deepen Capital Markets and Protect Investors
SEBI, the financial watchdog in India, is making some big changes to how the stock market works.
They're making it easier for big companies to offer shares to the public, and making it easier for foreign investors to invest.
They are also streamlining rules for things like related party transactions.
New rules also impact how mutual funds invest in REITs, treating them as equity.
These changes aim to attract more money, make it easier to follow the rules, and help protect investors.
Overall, it's about making the market better for everyone involved.
SEBI eased IPO norms for large issuers, allowing lower public float for some companies.
Anchor investor participation in IPOs has been broadened, increasing the anchor portion.
Thresholds for material related party transactions (RPTs) are now linked to company turnover.
A Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework was introduced.
REITs were reclassified as equity instruments for mutual fund investment purposes.
- Who
- SEBI (Securities and Exchange Board of India)
- What
- Announced multiple reforms to deepen capital markets and protect investors.
- When
- September 12 (board meeting)
- Where
- India
- Why
- To balance market growth with investor protection, simplify compliance, and align with global standards.
- Regulatory Body
- SEBI (Securities and Exchange Board of India)
- IPO Public Float for Large Issuers
- As low as 8% (market cap between Rs 50,000 crore and Rs 1 lakh crore), 1% (market cap over Rs 5 lakh crore)
- Anchor Investor Changes
- Single class with participation rules tied to issue size, anchor portion raised to 40%
- RPT Thresholds
- Linked to company turnover
- SWAGAT-FI Framework
- Streamlines access for foreign investors
- REIT Reclassification
- REITs now treated as equity instruments for mutual fund investment
