SEBI’s saptapadi to a more robust SME market
The tweaks could spark more investors to join early-stage growth stories, while keeping risk in check
The Securities and Exchange Board of India (SEBI) has proposed seven significant changes to the norms governing SME initial public offerings (IPOs), with the aim of creating a more robust SME market. Among the most notable changes is the reduction of the minimum application amount for SME IPOs from ₹2 lakh to ₹1 lakh, along with a requirement for a minimum of four lots, each worth at least ₹25,000.
SEBI has also proposed raising the minimum number of allottees to 500 from 200, potentially widening the investor base of SME companies. Additionally, the regulator has suggested raising the minimum average annual operating profit to ₹3 crore from ₹1 crore in at least two of the preceding three financial years, as well as shifting from post-issue paid-up capital to market capitalisation as the basis for determining listing eligibility.
These changes are expected to benefit both companies genuinely seeking to raise funds and investors looking to make informed, long-term investments.
Brief written by urgent.news from Hindu BusinessLine's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
