SEBI Announces Sweeping Changes To Attract FPIs; Here's 5 Key Take-Aways From The BIG Board Meet

Mumbai: The Securities and Exchange Board of India's (SEBI) on Friday organized a Board of Meeting. Post the meeting, Chairperson Tuhin Kanta Pandey revealed a set of sweeping-reforms.

Speaking to the media, the SEBI chairperson announced the details.

Here are the top-five key takeaways from the conference, held a few minutes away.

EASIER RULES: Revision in Minimum Public Shareholding Norms

The Sebi board has eased IPO rules for very large firms. The SEBI also extended timeline of up to 10-years to meet minimum public shareholding requirements.

Easier rules on minimum public shareholdings to simplify fundraising in India.

Revision in Minimum Public Shareholding Norms: Minimum public Shareholding or MPS norms have been marginally tweaked. There is no change with regards to MPS for companies with a market-cap of Rs 50,000 crores. But for organisations with m-cap of over Rs 5 lakh crores, the minimum public offer size is set at 1% or ₹15,000 crores.

The SEBI Chairperson also informed that in the likelihood of public shareholding at 15% or more, MPS of 25% will have to be achieved in five years.

PROMOTING FOREIGN INVESTMENTS (FIIs/FPIs)

SEBI Chairperson, Tuhin Kanta Pandey informed that the board had eased FPI entry into Indian capital markets with the introduction of a single window access to boost inflows.

To empower FPIs with information, SEBI has announced a new website - indiamarketaccess.in.

A New category of Alternative Investment Funds (AIFs) created exclusively for accredited investors, with relaxed regulations.

Retail schemes in International Financial Services Centres (IFSCs) can now register as foreign portfolio investors (FPIs).

Single-window clearance to be offered to trusted foreign investors, such as central banks, sovereign wealth funds, and regulated global institutions.

EASE FOR IPOs

Anchor investor allocation raised from one-third to 40 per cent of the public issue.

Related party transactions: Thresholds revised for shareholder approval requirements.

Besides MPS, the Chairperson also informed that Sebi had decided to revamp share-allocation framework for anchor investors in IPOs to broaden institutional investors' participation.

Additionally, Life Insurance companies and Pension Funds will be included in reserved category as part of the IPO anchor book. The Chairperson also informed of a reserved limit for anchor portion in IPO which has been increased to 40% from one-third of the IPO size.

MARKET SCHEMES

Minimum investment threshold for accredited investors cut from Rs 70 crore to Rs 25 crore.

REITs to be classified as equity instruments while InvITs remain hybrid instruments for the purpose of investments by mutual funds and specialized investment funds.

Distributors to receive up to 1 percent incentive for net inflows from beyond the top 30 cities, plus extra commission for investments by women investors.

More commission to Mutual Fund distributors for first-time women investors to empower women.

EASE IN COMPLIANCE

Relaxation in norms such as CIBIL reports and NET worth requirements.

Regulatory framework for registrars to be reviewed; amendments approved for investment advisers, research analysts, and market infrastructure institutions.

These

Market Infrastructure Institutions (MIIs) will have norms as regards directorship of MDs and EDs in other companies. MIIs will have to prioritize critical operations, regulatory, compliance, risk management, investor grievance over commercial interest.

Institutions are also expected to clearly define the role of MDs, EDs and specific Key Managerial Personnel (KMPs).

Simplification of minimum shareholdings will ease fundraising process in India. Overall, the governance and oversight reforms are expected to deepen capital markets, enhance investor protection, and attract more domestic and international capital.

Ahead of the announcements, there were rumors about SEBI elaborating on F&O weekly expiries. However the set of reforms announced on Friday did not have anything specific on F&O expiries except that a consultation paper may be published to seek comments from market participants before announcing any decision.

Published on: Friday, September 12, 2025, 09:40 PM IST