Business
India’s Capital Market Reforms: Sebi Eases IPO Norms, Tags REITs As Equity, Slashes MF Exit Load
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Sebi announces a slew of reforms across capital markets, easing IPO norms for large firms, simplifying foreign investor access, and tightening governance in market institutions.
Sebi Board Meeting Outcome.
The Securities and Exchange Board of India (Sebi) on Thursday announced a slew of measures for capital markets, including easing IPO norms for large companies, simplifying foreign investor access, and tightening governance in market institutions. The decisions were taken at the regulator;s board meeting on September 12.
IPO Norms Relaxed For Large Companies
In a major relief for companies eyeing large public floats, Sebi has eased the minimum public shareholding (MPS) requirements for firms with a market capitalisation of Rs 50,000 crore and above.
Companies valued between Rs 50,000 crore and Rs 1 lakh crore can now list with 8% public float, down from 10%. They will also get five years to raise their MPS to 25%, compared with three years earlier.
Those with over Rs 1 lakh crore market cap will be required to list only 2.75%, down from 5%.
For companies exceeding Rs 5 lakh crore market cap, the IPO float requirement has been cut to 2.5%.
These firms will now get 10 years instead of five to meet the 25% MPS norm.
The changes are expected to smoothen the listing path for giants such as Reliance Jio Infocomm and the National Stock Exchange (NSE), which have been awaiting clarity on IPO requirements.
Anchor Investor Framework Strengthened
The markets regulator also revamped the anchor investor framework to deepen institutional participation in IPOs.
The anchor portion has been raised from 33% to 40% of the institutional quota.
While one-third of the anchor book remains reserved for mutual funds, fresh space has been created for insurers and pension funds.
The number of anchor investors permitted per ₹250 crore of issue size has been raised from 10 to 15.
“This is aligned with global best practices and will broaden the quality of long-term institutional investors,” SEBI chairperson Madhabi Puri Buch said after the meeting.
SWAGAT-FI: A New Window For Trusted Foreign Investors
In a move aimed at attracting long-term, stable foreign capital, Sebi launched the Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework. The new system simplifies registration for low-risk investors such as sovereign wealth funds, pension funds and central banks, allowing them:
Unified registration as both Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs).
A single demat account to invest across routes.
Longer registration validity of 10 years, up from 3-5 years currently.
According to Sebi, these “trusted” investors represent nearly 70% of FPI assets under custody, and the simplified regime will significantly enhance India’s attractiveness as an investment destination.
REITs, InvITs Get Boost
To deepen participation in infrastructure and real estate investment vehicles, SEBI has broadened the definition of strategic investors in REITs and InvITs to include qualified institutional buyers, FPIs, pension funds, provident funds and insurers.
Further, REITs will now be classified as equity instruments, making them eligible for inclusion in equity indices, while InvITs will remain under the hybrid category. The move is expected to boost liquidity and mainstream REIT investments.
Mutual Fund Incentives, Exit Load Cut
Sebi has introduced new measures to encourage financial inclusion through mutual funds.
Exit load cap reduced from 5% to 3%, aligning with industry practice.
Distributors will be incentivised for:
- Onboarding new women investors.
- Bringing in investors from B-30 cities (beyond the top 30), with incentives capped at Rs 2,000 per investor.
Stronger Governance for MIIs
To strengthen governance in stock exchanges, clearing corporations and depositories — collectively termed Market Infrastructure Institutions (MIIs) — SEBI has mandated the appointment of two Executive Directors (EDs) as key managerial personnel.
One ED will oversee critical operations while the other will be responsible for compliance, risk management and investor grievances.
Stricter Norms for Related Party Transactions
For listed companies, Sebi has introduced a new turnover-linked materiality threshold for related party transactions (RPTs), with an absolute ceiling of Rs 5,000 crore. The move is aimed at protecting minority shareholders while offering operational flexibility to large firms.
AIF Framework Liberalised
Alternative Investment Funds (AIFs) also received regulatory flexibility.
Introduction of AI-only schemes (for accredited investors) with lighter compliance requirements.
Large Value Fund (LVF) threshold lowered from Rs 70 crore to Rs 25 crore, making it easier for investors to qualify.
Other Decisions
Registrars to an Issue (RTAs) will now come under activity-based regulation.
Investment advisers and research analysts will find it easier to qualify, with graduates from any stream eligible, subject to NISM certification.
Sebi plans to expand its local offices to more cities for better investor outreach.
The consultation on introducing a Closing Auction Session (CAS) in equity markets has been extended till September 19.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
September 13, 2025, 08:42 IST
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A scheme has been launched to compensate victims of the Post Office Capture IT scandal that saw former subpostmasters forced to repay shortfalls.
The Government said those affected can now apply for redress, with those found to be eligible set to receive £10,000 immediately and final awards potentially reaching up to £300,000 after full assessment by an independent panel, or more in certain cases.
The Capture system pre-dated the now infamous Horizon software, which has been responsible for around 1,000 wrongful convictions.
An independent report into faulty accounting system Capture was commissioned last year after subpostmasters said they had suffered similar problems to those faced by the Horizon victims.
The report by forensic accountants Kroll Associates, which concluded there was a reasonable likelihood that Capture – in use at Post Office branches between 1992 and 2000 – created financial shortfalls for postmasters.
In some cases, postmasters resorted to using their own savings to make up the difference.
The scheme will be not be open to postmasters who have criminal convictions related to Capture.
Those who were given criminal convictions must instead go through the Criminal Cases Review Commission, or its Scottish equivalent.
The Government has said it will “ensure that appropriate redress is given” to those where convictions are overturned by the courts.
The compensation scheme will be tested for the first 150 claimants before being rolled out more widely.
Post Office minister Blair McDougall said: “After over two decades of fighting for justice, postmasters and their families will finally receive recognition and recompense for the lives and livelihoods that Capture destroyed.
“I’d like to thank all of those victims who have helped us to design this scheme, allowing us to deliver on our promise of providing redress today.
“We can’t make up for everything they have lost, but today we begin restoring some of the dignity so cruelly taken away by this scandal.”
The Government said the scheme has been designed “hand in hand” with victims, while also taking lessons into account from redress schemes for the Horizon IT Scandal.
So far, more than £1.2 billion has been paid out in compensation to more than 9,000 victims of the Horizon scandal, it added.
New Delhi: The Central Board of Direct Taxes (CBDT) has extended the due dates for filing audit reports and Income Tax Returns (ITR) for the Assessment Year 2025–26, giving major relief to businesses, professionals, and firms whose accounts require auditing.
Earlier, the deadline to submit tax audit reports was October 31, 2025, and the corresponding ITR filing deadline was also October 31, 2025. However, considering technical delays and representations from taxpayers and professionals, the CBDT has now extended both these dates.
As per the latest circular, taxpayers who are required to get their accounts audited under the Income Tax Act, 1961 can now file their audit reports by November 10, 2025, instead of October 31. Consequently, the due date for filing the ITR for such taxpayers has also been pushed to December 10, 2025.
This extension applies to companies, Limited Liability Partnerships (LLPs), and other entities whose books of accounts need to be audited. It also benefits professionals and small businesses who were facing difficulties due to late availability of ITR forms and software utilities.
The government’s decision aims to provide adequate time for taxpayers and auditors to ensure accuracy and compliance while reducing last-minute rush and filing errors. The extension also reflects the government’s understanding of the challenges faced by the accounting community, especially with overlapping deadlines for GST audits and other financial filings.
Tax experts advise taxpayers to make the most of this extension by completing audits early and verifying data consistency between GST, TDS, and income tax returns to avoid discrepancies during assessment.
In summary, the new deadlines are:
Audit Report Filing: November 10, 2025
ITR Filing for Audited Taxpayers: December 10, 2025
Missing these dates could still attract penalties and interest, so taxpayers are urged to file well before the final deadline.
Gold and silver prices have experienced significant fluctuations recently. The US-China trade deal and the strengthening US dollar are the primary factors influencing these movements. Investors tend to reduce their investments in precious metals when market and global geopolitical conditions appear stable, leading to a decline in prices.
On the Multi Commodity Exchange of India (MCX), gold for December fell by Rs 1,546 to Rs 1,21,905 per 10 grams. Last week, which had fewer trading days due to holidays, saw gold prices drop by Rs 3,557 (2.80%). Similarly, silver for December decreased by Rs 1,964 to Rs 1,45,506 per kg.
During the same week, silver prices fell by Rs 9,134. Many traders engaged in transactions involving 12,428 gold bars and 20,367 silver bars. The progress in US-China trade talks has contributed to the declining prices since Friday.
The recent price decline can be attributed to the two-day meeting between US and Chinese leaders in Malaysia. They reportedly reached a consensus on key issues such as export rules and shipping tariffs. As a result, the US-China trade deal and the strong US dollar have diminished the demand for safe-haven assets, leading to a further decline in gold prices.
This week, central banks are expected to make significant decisions regarding interest rates. The US Federal Reserve is likely to cut rates by 0.25%, while the European Central Bank and the Bank of Japan are expected to maintain their current rates. Traders are closely monitoring these developments.
Expert Darshan Desai commented, “We should be prepared for significant fluctuations in the short term. Gold prices may fall further.”
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