From mint · Apoorva Ajith · · 1m 20s
Sebi Forms Working Group to Review Mainboard IPO Rules
Sebi launches working group to overhaul mainboard IPO and FPO regulations.
In brief
Sebi launches working group to overhaul mainboard IPO and FPO regulations. Sebi will review mainboard IPO and FPO rules to improve listing eligibility, financial reporting, and profitability thresholds. Originally reported by mint.
Sebi to form working group
Sebi plans to set up a sub-group under its Primary Markets Advisory Committee to review mainboard IPO and FPO regulations.
Working group review scope
The group will examine chapter ii, iia, and iv of the Sebi ICDR Regulations, 2018, focusing on listing eligibility, pricing, and lock-in requirements.
ICDR regulations background
The ICDR regulations, introduced in 2018 to replace the 2009 framework, set conditions for public capital raising through IPOs and FPOs.
Profitability thresholds
Sebi may change listing thresholds including the number of years a company must be profitable and valuation safeguards.
SME IPO review
Sebi is separately reviewing SME IPO rules, including tighter listing eligibility and financial reporting requirements.
SME platform expansion
As of 31 July, 1,496 entities listed on SME platforms, with cumulative fundraising of ₹ 40,222 crore.
Regulatory changes proposed
Sebi proposed raising the minimum average operating profit requirement for SME IPOs to ₹ 3 crore annually over three years.
Timeline for review
Sebi sent an email to PMAC members on 12 October, inviting nominations until 13 October for the working group.
What to remember
Sebi will review mainboard IPO and FPO rules to improve listing eligibility, financial reporting, and profitability thresholds.
