SEBI wants to shake up IPOs and mutual funds—here's what's changing
SEBI (India's market watchdog) is planning new rules to make IPOs and mutual funds safer and more transparent.
Think better enforcement of existing lock-in periods for certain shares before a company goes public, making pledged shares non-transferable, and lowering the fees you pay on mutual funds.
It's all about giving investors—especially retail ones—a fairer shot.
What's new for IPOs?
SEBI wants to ensure that pre-IPO shares held by non-promoters stay locked in for six months by marking them as non-transferable, which is expected to make compliance easier for all involved.
For really big companies going public, there could be relaxed requirements on how much stock must be offered to the public, plus more time to meet shareholding rules.
More anchor investor slots are also on the table to attract big institutional buyers.
Mutual fund changes you should know
Expect lower costs: SEBI is proposing a 15 basis point cut in total expense ratio (TER) for open-ended mutual fund schemes and 25 basis points off closed-ended ones.
Taxes like GST and stamp duty would be kept outside these caps, so you see more of your money working for you.
Other updates: governance & easier info
There are plans to slash brokerage fees on trades and boost transparency with better asset disclosures and stronger whistleblower protections.
SEBI also wants IPO paperwork simplified—a short Offer Document Summary instead of dense prospectuses—to help regular investors quickly understand what they're buying into.