The Securities and Exchange Board of India (Sebi) has introduced significant relief measures for companies planning public listings, allowing 50% adjustment in issue sizes without requiring fresh regulatory filings. According to an email dated 13 April sent to the Association of Investment Bankers of India (Aibi), as reported by Reuters, the regulator permits issuer companies to increase or decrease issue size by up to 50% of the estimated issue size without filing fresh draft offer documents on a case-by-case basis. This relaxation comes with specific conditions: the main object of the issue must remain unchanged, lead managers must certify compliance with Sebi regulations, and issuers are required to seek approval from Sebi with justification for the size change. The relief measures are being implemented as market participants face issues in mobilising resources and accessing capital markets due to tensions in the Middle East, with the regulator stating that by end of September, the Middle East crisis will either be resolved or companies will be in a position to better plan their fund raises.
Under the new guidelines, companies need only to present revised offer sizes to Sebi for formal approval, with such reviews receiving expedited attention to provide immediate relief. As reported by Team Angel One, this operational adjustment is anticipated to mitigate potential financial disruptions rooted in geopolitical upheavals, encouraging smoother transactions in volatile market conditions. The relief measures are specifically tailored for issuers planning to procure fresh capital until September 30, 2026, with the provisions aimed at weathering the impacts of the Middle East crisis while maintaining market stability. These changes come after Sebi received representations from Aibi on difficulties faced by issuers in mobilizing resources and accessing capital markets, with the regulator stating that these reviews will be fast-tracked to provide immediate relief to companies navigating challenging market conditions while preparing for public listings.
In a separate regulatory move, Sebi has sharply reduced the minimum investment required from individual investors in social impact funds to ₹1,000 from the existing ₹2 lakh, as announced in its notification dated April 16. This reduction aligns the minimum application size requirement for subscribing to Zero Coupon Zero Principal Instruments under Sebi's ICDR (Issue of Capital and Disclosure Requirements) Regulations, 2018 with the minimum investment value requirement for individual investors in Social Impact Fund. Earlier, AIF rules required individual investors to invest a minimum of ₹2 lakh in a social impact fund that invests in securities of NPOs listed or registered on the Social Stock Exchange (SSE). To implement this change, Sebi has amended the Alternative Investment Fund (AIF) rules, significantly broadening retail participation in social impact investments.
In 2026, 19 companies have made their market debut through mainboard IPOs while 44 companies went public through small and medium enterprise (SME) IPOs, according to Chittorgarh, a research platform. As of April 2, Sebi had given approval for 143 companies to raise a combined ₹1.745 trillion ($18.7 billion) through IPOs, according to data from information provider Prime Database. The changes come after Sebi extended the validity of IPO approvals for companies planning to go public, with observation letters expiring between 1 April and 30 September 2026 now remaining valid until 30 September. Sebi also eased pressure on listed companies by providing more time to comply with minimum public shareholding norms.
The relief measures apply to companies opening public issues before 30 September 2026, providing a six-month window for adjustments. As reported by Reuters, the changes come after Sebi received representations from Aibi on difficulties faced by issuers in mobilizing resources and accessing capital markets. Under the new rules, firms will only have to submit their revised offer size to the Securities and Exchange Board of India (SEBI) for approval and these reviews will be fast-tracked, with the regulator stating that these reviews will be fast-tracked to provide immediate relief to companies navigating challenging market conditions while preparing for public listings. Last week, Sebi allowed companies whose deadlines for an IPO are due to lapse between April 1 and September 30 to have until September 30 to complete them, with companies not being penalised if they could not meet the requirement of having 25% of their stock held by public shareholders.
