SEBI Board Decisions: Startup, IPO, PSU and FPI Relief
Why in the news
SEBI’s board cleared relaxations for IPOs, startups and FPIs, helping startups return their domicile to India (reverse flipping).
Key facts
| Area | Decision |
|---|---|
| ESOPs | Founders keep ESOPs granted 1+ year before DRHP; new grants barred |
| CCS | Fully paid CCS holders convert and sell without 1-year lock-in |
| Promoter contribution | Foreign VCs, AIFs, public financial institutions count |
| PSU delisting | Easier above 90% holding |
| FPIs | Lighter rules for G-sec-only investors |
| Intermediaries | Bankers, trustees, custodians keep non-core work |
| Legacy | Settlement scheme for NSEL brokers and VC funds |
Exam angle
- Terms: DRHP, CCS, OFS, AIF.
- Reverse flipping: shifting domicile back to India.