What’s new for IPOs, Foreign investors and REITs

The Securities and Exchange Board of India (SEBI) has approved several big changes aimed at making the Indian capital market more transparent, investor-friendly, and globally attractive.

These decisions were taken in a recent board meeting chaired by SEBI Chairman Tuhin Kant Pandey on September 12, 2025.

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This was the third board meeting under his leadership.

One of the key updates includes relaxation in IPO rules.

Now, large companies will find it easier to launch Initial Public Offerings (IPOs), as SEBI has eased the minimum requirements.

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Additionally, these companies will get more time to meet public shareholding norms, making the process more flexible.

Simpler Entry for Foreign Investors & New Rules for Anchor Investors

To encourage global participation, SEBI has decided to simplify the entry process for low-risk foreign investors.

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A single-window access system will be introduced, which will make it easier for foreign entities to invest in Indian markets by reducing compliance burdens.

In another key move, SEBI has introduced a new share allocation framework for anchor investors in IPOs.

This is expected to increase participation from global institutional investors and make public offerings more transparent and appealing.

Stronger Oversight of Market Infrastructure & REIT Reclassification

SEBI has also taken steps to strengthen monitoring of market infrastructure institutions like stock exchanges.

These institutions will now be required to appoint at least two Executive Directors (EDs) to ensure better governance and operational transparency.

In a move to promote alternative investment products, SEBI has granted equity product status to REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts).

This change is expected to increase investor participation and boost confidence in these products.

Conclusion: A Big Step Towards Market Reforms

Experts believe these reforms will be a milestone in improving India’s capital market, making it more competitive on the global stage.

From relaxed IPO norms to easier foreign investment and better governance, SEBI’s latest decisions reflect its commitment to building a strong, transparent, and investor-focused market environment.

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