June 18, 2025, the Securities and Exchange Board of India (SEBI) held its 210th Board meeting, ushering in a series of critical reforms aimed at enhancing transparency, easing regulatory processes, and deepening India’s capital markets. Here’s a detailed breakdown of the major decisions:
- Special PSU Delisting Route
A unique delisting procedure has been approved for Public Sector Undertakings (PSUs) where the government holds 90% or more equity. This specialized route allows the state to take such companies private in a streamlined manner, aiming to reduce bureaucracy and align with disinvestment goals.
- IPO Reforms for Founders & Reverse Flip Companies
The regulator has unveiled reforms to support founders and reverse-flipping entities during IPOs, enabling smoother transitions when founders swap private and public entities. These measures aim to foster entrepreneurial confidence and simplify complex ownership structures.
- Dematerialisation Mandate before IPOs
Introducing an investor-friendly step, SEBI now mandates full dematerialisation of securities before IPOs. This ensures a shift away from paper, promoting operational efficiency, transparency, and faster settlements.
- Streamlined Disclosure for Institutional Placements
SEBI has simplified disclosure obligations related to institutional placements, reducing cumbersome paperwork and encouraging greater institutional participation.
- Easing FPI Rules for Government-Securities-Only Investors
Foreign Portfolio Investors who deal exclusively in government securities will now enjoy relaxed regulatory requirements, smoothing market entry for sovereign or passive investors.
- Co-Investment Access for AIFs
Category I & II Alternative Investment Funds (AIFs) are now permitted to co-invest alongside others, encouraging pooling of capital and shared risk, a welcome move for expanding India’s startup ecosystem.
- NSEL Broker Settlement Window
SEBI approved a special settlement window for brokers implicated in the NSEL (National Spot Exchange Ltd) case, aiding faster resolution and closure of legacy disputes.
- REIT & InvIT Norm Enhancements
Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) now enjoy relaxed norms, which lower barriers for fundraising and boost the appeal of passive investment vehicles .
- Greater Flexibility for Merchant Bankers
Under revised regulations, merchant bankers have been granted expanded operational flexibility—enhancing their ability to facilitate deals and serve a broader client base.
- Support for Social Stock Exchange
SEBI endorsed reforms for the Social Stock Exchange—a platform listing social enterprises and charities—thus expanding channels for impact investing in India.
