Sebi Proposes Market Cap-Based SME IPO Norms, Seeks Public Comments on Regulatory Overhaul

SEBI plans sweeping SME IPO rule changes, raises profit threshold to ₹3 crore

SEBI has proposed a comprehensive overhaul of regulations governing initial public offerings by SMEs, including tighter profitability criteria, revised listing eligibility based on market capitalisation and changes to shareholding lock-in requirements

Sebi proposes market cap-based SME IPO norms, seeks public comments on regulatory overhaul

Sebi has proposed a sweeping overhaul of SME IPO regulations, including market capitalisation-based eligibility thresholds, higher profitability requirements, lower minimum application values and changes to allotment norms. The proposals also cover underwriting, market making, lock-in periods and migration to the main board. Public comments are invited until November 4, 2026.

Sebi proposes ₹1,000 crore market-cap threshold for SME IPOs, eases exit rules

Sebi has also proposed raising the minimum average operating profit requirement to ₹3 crore annually over the preceding three financial years from the existing requirement of ₹1 crore in at least two of the previous three years.

SEBI proposes SME-only IPO route for firms valued up to Rs 1,000 crore

Digital Desk | Mumbai, Oct 14 (IANS) The Securities and Exchange Board of India (SEBI) on Wednesday proposed a major revamp of the SME initial public offering (IPO) framework, including restricting SME-platform listings to companies valued up to Rs 1,000 crore, easing fundraising norms and reducing compliance requirements to improve market efficiency. Under the proposals, companies with a valuation of up to Rs 1,000 crore would be required to …