SEBI Considering Changes Related to IPOs and FPOs

India’s market regulator, Securities and Exchange Board of India (SEBI), is considering changes to the rules and regulations related to Initial Public Offerings (IPOs) and Follow-on Public Offers (FPOs), according to reliable sources associated with this development.

Jagat Joshi

6 November 2026

To make the changes, SEBI has formed a sub-group under its Primary Markets Advisory Committee (PMAC). This sub-group will provide recommendations on which rules or regulations should be considered for change. A formal decision will be taken after considering these suggestions.

According to sources, this sub-group will consider changes to the ICDR (Issue of Capital and Disclosure Requirements) regulations, specifically across Chapter 2, Chapter 2A, and Chapter 4.

Chapter 2 contains rules regarding IPOs launching in the stock market. Chapter 2A covers FPO regulations such as eligibility criteria for the company planning to launch the IPO, determination of the issue price, promoters’ contribution, and lock-in period regulations.

Chapter 4 will determine under what circumstances listed companies can raise capital by bringing another offering (FPO).

Sources further said that SEBI is considering revising the minimum eligibility criteria for a company to list its shares on the Mainboard, including:

how many years the company should make a profit before listing
whether the company meets the safety and valuation-related rules.

The current ICDR Regulations were implemented in 2018. Before these, the framework introduced in 2009 was applicable

SEBI Considering Changes Related to IPOs and FPOs

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