SEBI Board Meeting – Introduces New Reforms to Simplify IPOs, AIFs, and Investments

SEBI has launched some new regulatory measures to simplify processes for foreign investors. Over the years, the foreign investors (FPIs) have found difficulties in finding information as it was spread across numerous regulations and institutions. And to address this issue, the market regulator SEBI decided to launch a new website called ‘India Market Access’ (www.indiamarketaccess.in), which gives all rules and information in one place, helping foreign investors (FPIs) easily invest and follow compliance in India.

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SEBI has also approved the SWAGAT-FI (Single Window Automatic & Generalised Access for Trusted Foreign Investors) framework for FPIs and FVCIs. This framework will help foreign investors easily invest, reducing paperwork and providing a single automatic window for them.

On August 8, 2025, SEBI issued consultation papers to seek public feedback and advice from AIPAC (Alternative Investment Policy Advisory Committee). And through the Feedback, the SEBI also decided to cut the minimum investment for LVFs from ₹70 crore to ₹25 crore, which will help boost more capital. 

As for big companies that have a market cap between ₹1 lakh crore and ₹5 lakh crore, the SEBI suggested a minimum public offer of 2.75%. The final decision is yet to be taken by the government. 

Tuhin Kanta Pandey, the SEBI’s Chairperson, is planning to make changes in the AIFs (Alternative Investment Funds) regulations to describe AI-only funds, which will help accredited investors understand the risks better. 

As of September 12, the SEBI has approved the plan to make IPOs easier for large companies. This means that companies that are worth over 5 lakh crore can only sell 2.5% shares in IPOs instead of 5%. And the companies that are worth ₹50,000–1 lakh crore now will get 5 years to reach 25% public shareholding instead of 3 years. 

SEBI also confirmed hiring 2 executive directors to lead vertical 1 and vertical 2, who will join the MII board, as well as explained the roles of MDs, EDs, and key managers.

For IPOs, SEBI raised the anchor investor percentage from one-third to 40% to allow more institutional investors. Domestic mutual funds will receive one-third of this, with the remainder going to pension funds and insurance providers.

SEBI finalized the AIF schemes only for accredited investors with fewer rules and cut the mutual fund exit fees from 5% to 3% for cities outside the top 30.

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