India · Updated 16 Oct, 03:19 am IST
SEBI proposes major changes to SME IPO rules in October consultation
Why it matters for readers: It matters because the changes could change how many startups and small firms go public and how easy that process is.
- SEBI floated a consultation paper on October 14 and invited feedback until November 4.1
- Under the proposed market-cap framework, firms with post-issue market cap up to ₹1,000 crore can list on the SME platform, while those between ₹1,000–₹4,000 crore may choose SME or main board listing.1
- The paper proposes lowering the minimum application threshold and removing mandatory underwriting and market-making requirements for SME listings.1
- SEBI said the changes were prompted by a rapid increase in funds raised and investor participation in SME IPOs since the SME platform began in 2012.1
- About 1,500 companies have used the SME platform since 2012 and have raised around ₹40,222 crore, including startups like Zappfresh and DroneAcharya.1
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