Archive · 1 Jan 2026
Sebi's curbs slow SME IPO growth
The number of new stock listings for small and medium-sized businesses in India is growing more slowly this year.
Last year, these listings grew by 31%, but this year they've only grown by 12.5%.
This slowdown is because of new rules from the Securities and Exchange Board of India (Sebi).
These rules make it harder for some small businesses to list on the stock market.
The rules were put in place to prevent misuse and speculation.
Some experts say these changes are working as intended, but they also make it tougher for small businesses to raise money through the stock market.
The number of initial public offerings (IPOs) on the small and medium enterprises (SME) platforms grew 12.5% so far this year, compared with a 31% surge in 2024.
Sebi's regulatory curbs, which tightened eligibility, governance, and fund-use norms, significantly contributed to the slowdown.
These changes aimed to curb misuse and speculation in SME IPOs.
The curbs made listings harder for some SMEs, according to Jay Jhaveri, partner at Bhuta Shah and Co. LLP.
The regulatory changes started late 2024 and continued into 2025.
- Who
- Small and medium enterprises (SMEs) and the Securities and Exchange Board of India (Sebi)
- What
- A slowdown in the growth of initial public offerings (IPOs) on SME platforms due to Sebi's regulatory curbs
- When
- Starting late 2024 and into 2025
- Where
- India
- Why
- To curb misuse and speculation in SME IPOs
- IPO Growth 2025
- 12.5%
- IPO Growth 2024
- 31%
- Regulatory Body
- Securities and Exchange Board of India (Sebi)
- Effect of Curbs
- Tightened eligibility, governance, and fund-use norms
- Source of Information
- Pantomath Capital Advisors and Jay Jhaveri, partner at Bhuta Shah and Co. LLP
