SEBI is revamping its IPO rules—what's the update?
SEBI is setting up a new panel to clean up and simplify the massive 475-page rulebook that companies must follow to launch an IPO in India.
Right now, these rules often leave retail investors scratching their heads, and even basic IPO documents can run 600-900 pages long.
A look at the new panel
The group—made up of bankers, industry pros, and legal experts—will look for ways to cut out confusing or outdated requirements so more people can understand and participate in IPOs.
They'll suggest changes by September, then open things up for public feedback before SEBI's board gives the final nod.
What will the new rules look like?
Expect clearer rules on how IPO prices get set (so selling shareholders have less sway), plus a cap on how much existing owners can cash out in Main Board IPOs.
The goal: make sure companies raise real money for growth, not just let big investors exit.
These updates also aim to bring smaller SME listings and bigger Main Board listings onto the same page with better disclosure and stronger investor protection.