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SEBI’s Market-Deepening Reforms in Brief

16 September 20251 min read
BANKING & FINANCESEBI’sMarket-DeepeningReforms in Brief16 September 2025safalsetu.com

Why in the news

SEBI introduced structural changes to bring in more investors, improve openness and attract quality securities, covering both primary and secondary markets.

Key facts

  • Public shareholding: longer time after IPO to meet the minimum public shareholding norm.
  • Anchor investors: a bigger IPO portion is reserved for them.
  • Mutual funds: exit load limits lowered.
  • Low-risk FIIs: lighter disclosure duties.
  • REITs: counted as equity for mutual fund investing; more institutions may act as strategic investors, helping liquidity.
  • Governance: related-party transaction approvals tied to turnover.

Exam angle

  • Regulator: SEBI; asset reclassified as equity for MFs: REITs.
  • Aim: broader participation and lower compliance cost.

Test yourself

1. How will shareholder approval for related-party transactions be decided under SEBI's reforms?

The notes say approvals will be based on company turnover.

2. SEBI reclassified which instrument as equity for mutual fund investments?

REITs have been reclassified as equity for mutual funds.

3. Which group now faces relaxed disclosure requirements under the reforms?

Low-risk FIIs have relaxed disclosure rules.