India’s markets regulator has introduced new measures to make it easier for foreign investors, including sovereign-backed and overseas retail funds, to access the local market through a streamlined single-window clearance system.
The Securities and Exchange Board of India (SEBI), which met in Mumbai on Friday, also reduced the proportion of shares large companies must sell during an initial public offering (IPO) and simplified disclosure requirements for low-value transactions between related parties, News.Az reports, citing Reuters.
The changes come amid accelerated outflows from Indian markets this year, with foreign investors withdrawing $11.7 billion from equities and debt, driven by U.S. tariffs, weak corporate earnings, and higher valuations compared to regional peers.
Under the new rules:
Large companies with a post-IPO market capitalization above 5 trillion rupees now need to sell only 2.5% of their shares, down from 5%.
The deadline to meet the 25% public float requirement has been extended from three years to five years. Firms exceeding a 1 trillion rupee market cap after listing may have up to 10 years to comply.
SEBI said the measures will help the market better absorb large IPOs and support India’s rapidly growing IPO ecosystem, which is on track for a record fundraise of around $20 billion in 2025.
