SEBI Approves Market Reforms Covering IPOs, FPIs, REITs, AIFs and Registrar Rules

The Securities and Exchange Board of India (SEBI) has cleared a wide set of reforms aimed at expanding market participation, simplifying processes, and strengthening governance.

SEBI has approved reforms covering Initial Public Offerings (IPOs), Foreign Portfolio Investors (FPIs), Real Estate Investment Trusts (REITs), Alternative Investment Funds (AIFs), and mutual funds (MFs). Large firms will have a lower minimum public offer size, more time for shareholding compliance, and higher anchor investor allocation at 40%. Trusted foreign institutions gain single-window access, IFSC retail schemes can register as FPIs, a new AIF category is introduced with Rs 25 crore ticket size, and REITs will be treated as equity.

Separately, SEBI approved activity-based regulations for Registrar and Share Transfer Agents (RTAs). Services for listed firms will remain under SEBI, while those for unlisted companies will fall under the Ministry of Corporate Affairs (MCA). RTAs serving both will need to set up separate business units, with Rs 50 lakh net worth requirement. SEBI also mandated internal controls, surveillance systems, and whistle-blower mechanisms to strengthen investor protection.