Descriptive Prep: Brajesh Mohan

Key Reforms by SEBI 1. Relaxation in IPO dilution norms — Minimum dilution requirement for large companies has been reduced. — Companies with market cap above ₹5 trillion now need to offer shares worth only ₹15,000 crore and at least 1% of mcap, with a minimum dilution of 2.5% prescribed. — For companies with market cap between ₹1–5 trillion, dilution norms are adjusted accordingly. 2. Extended timelines for Minimum Public Shareholding (MPS) — Firms listing with 15% public shareholding get 5 years to meet 15% MPS and 10 years for 25% MPS. 3. Eases compliance burden for large firms. — Anchor Investor Framework Changes — Reservation for domestic mutual funds, life insurers, and pension funds increased from 33.33% to 40%. 4. Foreign Portfolio Investors (FPIs) Onboarding — New platform SWAGAT-FI introduced for easier onboarding of low-risk FPIs (like sovereign wealth funds, insurance cos., govt-related investors). — One-time KYC introduced with $2,500 fee for a 10-year block. — FPIs exempted from 50% aggregate contribution cap (NRIs & overseas citizens). 5. Strategic Investor Scope Expanded — In REITs and InvITs, strategic investors can now include provident funds, public financial institutions, AIFs, and state industrial corporations. 6. Mutual Fund Reforms — Exit load capped at 3% (down from 5%). — Incentives for distributors reintroduced for new inflows from beyond top 30 cities.