The Securities and Exchange Board of India (SEBI) has brought major changes in initial public offering (IPO) regulations. During Friday's board meeting, the regulator announced relaxation of the SEBI IPO norms 2025 to help large companies prepare for listing on Indian bourses.

Extended Timeline for Minimum Public Shareholding

One of the key announcements in the new SEBI IPO guidelines 2025 is the relaxation of the minimum public shareholding (MPS) requirement. Large companies with market capitalisation of ₹50,000–₹1,00,000 crore will get more time to comply with the rule.

·         The firms will be required to adopt 15% public shareholding within five years from the listing date.

·         They will then need to attain 25% public shareholding within 10 years.

This is a huge shift from the old framework, whereby businesses had limited flexibility. Industry participants have welcomed the move, which said it reduces the necessity for ad hoc exemptions and avoids surprise equity dilution that could adversely affect share prices.

REITs and InVITs Classified as Equity Instruments

Another significant change in the SEBI IPO norms 2025 is the classification of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs) as equity products. This will make it easier for mutual funds to invest in these schemes, widening the asset class for retail investors and providing additional liquidity to the market.

Experts believe this step could fuel investor appetite for real estate and infrastructure finance, which are included in India's long-term growth strategy.

Relaxed Guidelines for Advisors and Researchers

SEBI has also liberalized the guidelines of investment advisors and research analysts. Any stream graduate is now eligible to apply for certification, provided they clear the compulsory National Institute of Securities Markets (NISM) exam, under new SEBI IPO norms 2025.

The regulator has also eased conditions on CIBIL reports, net worth, and asset-liability statements. These steps are expected to relax entry barriers and bring more professionals to the industry.

Strengthening Market Infrastructure

In addition to IPO-related reforms, SEBI has updated the governance norms of stock exchanges and depositories, promoting the transparency of market operations. It launched India Market Access website, a one-stop option for foreign portfolio investors (FPIs). The website will provide regulatory and procedural information so that international investors will have it easier to understand and access the Indian securities market.

Expert Reactions

Market analysts have largely appreciated the SEBI IPO norms 2025 reforms. They argue that giving listed companies additional time to meet public shareholding requirements is a balancing act between investor protection and the mechanics of fund-raising.

Adding REITs and InVITs as equity instruments is seen as a positive move that will help grow India’s capital markets.

Conclusion

The SEBI IPO guidelines 2025 are a significant shift in the mindset of India regarding capital markets. By allowing leeway to large companies, expanding the range of investment options, and simplifying compliance, SEBI is sending a message that it wishes to make India more appealing to domestic as well as foreign investors.