SEBI Introduces New Framework for SME IPOs to Protect Retail Investors
SEBI has announced a comprehensive new framework for SME IPOs with stricter eligibility criteria and enhanced disclosure requirements.
The Securities and Exchange Board of India (SEBI) has introduced a new regulatory framework for Small and Medium Enterprise (SME) IPOs aimed at better protecting retail investors while ensuring capital market access for growing businesses.
Key changes include minimum post-IPO paid-up capital of ₹10 crore, mandatory profitability track record, and stricter lock-in requirements for promoters. The new framework also mandates enhanced disclosures about related party transactions.
Industry bodies have welcomed the move, saying it will improve the quality of SME listings and reduce speculative trading in SME stocks.