PTI New Delhi

Sebi on Monday proposed relaxing the minimum public offer requirements for very large companies, while also extending the timelines for them to meet minimum public shareholding norms.

The proposed framework, if implemented, aims to ease the immediate dilution burden on issuers, while still ensuring gradual compliance with public shareholding requirements. As part of this approach, Sebi has suggested retaining the retail quota at 35%, in line with the existing regulations. Instead of reducing retail participation, the regulator is looking to address issuer concerns by amending rules related to minimum public offer thresholds.

This marks a shift from its earlier consultation paper, issued on July 31, which had proposed cutting the retail quota for IPOs above Rs 5,000 crore from 35% to 25%, citing difficulties faced by issuers in managing large issues. Under the proposed rules, however, instead of adhering to a fixed high percentage, large issuers will have the flexibility to start with smaller IPOs and gradually meet shareholding requirements over a longer period.

Sebi extends margin pledge deadline to Oct 10

Sebi on Monday extended the deadline for the implementation of framework pertaining to the process of margin obligations via pledge and re-pledge within the depository system to October 10. This was scheduled to come into effect from September 1, 2025. The extension came after Sebi received representation from depositories--CDSL and NSDL -- requesting for an extension of time to carry out system developments and to ensure system readiness by carrying end-to-end testing "To ensure smooth implementation without any disruption to the market players and investors, it has been decided to extend the timeline for implementation to October 10, 2025.”