SEBI’s Market-Deepening Reforms in Brief
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.