SEBI mulls sweeping SME listing overhaul to increase investor participation
SEBI plans to allow companies with a market value of as much as ₹4,000 crore to use the SME platforms for IPOs
The Securities and Exchange Board of India (SEBI) is considering significant regulatory changes to boost participation in the listing of small and medium enterprises (SMEs) on dedicated platforms. If the proposals proceed, companies with a market valuation up to ₹4,000 crore ($420 million) could be eligible for SME platform listings, up from the current ₹500 crore threshold.
The regulator is also contemplating eliminating minimum trade sizes, allowing smaller investors to buy and sell shares in quantities as low as ₹200,000, which is currently required. SEBI is also planning to raise the paid-up capital threshold for businesses eligible to list on SME platforms from ₹25 crore to potentially ₹100 crore.
These changes aim to reduce barriers and costs, making SME IPOs more accessible to investors and potentially increasing overall market participation. The proposed changes would represent the most substantial overhaul of India's SME market since their introduction in 2012.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
