SEBI has lowered the minimum public issue size for mega IPOs from 5% to 2.5% when post-listing market value crosses ₹5 trillion.
Companies will now get five years, instead of three, to reach the mandatory 25% public float, reducing near-term listing pressure.
For market giants with valuations above ₹1 trillion, this compliance window could be stretched to 10 years.
A new single-window clearance system is being designed to simplify registration for sovereign and retail foreign funds.
The move comes as India aims to retain its top spot among global IPO markets amid volatile foreign inflows.
Analysts believe relaxed rules will enhance liquidity and make large Indian companies more attractive to ov
erseas investors.
At the same time, corporate governance standards are expected to be monitored closely despite lenient float requirements.
The changes follow concerns that aggressive float rules may deter large, globally ambitious Indian listings.
This is expected to provide relief to capital-intensive sectors such as tech, telecom, and energy.
Investors see the step as a balancing act between easier market entry and safeguarding long-term i
nvestor trust.