Top 10 Takeaways from SEBI’s Latest Board Meeting (September 2025)

The Securities and Exchange Board of India (SEBI) has introduced a fresh wave of reforms at its board meeting held on September 12, 2025. The decisions span across IPOs, mutual funds, FPIs, Alternative Investment Funds (AIFs), and governance rules for stock exchanges. These reforms are expected to ease mega IPO fundraising, attract foreign capital, and improve investor protection.

Let’s break down the 10 biggest highlights from SEBI’s board meet.

1. Mega IPO Relief for Large Companies

SEBI has relaxed IPO rules for mega listings:

• Firms above ₹50,000 crore market cap must now offer ₹1,000 crore + 8% to the public.
• For companies worth ₹1–5 lakh crore, the public offer is ₹6,250 crore + 2.75%.
• Those above ₹5 lakh crore must issue ₹15,000 crore + 1%, with a floor of 2.5%.

👉 The timeline to reach 25% minimum public shareholding has been extended to 10 years, making it easier for large corporations to tap public markets.

Learn more about SEBI’s IPO regulations.

2. Higher Allocation for Anchor Investors

• Anchor investor quota increased from one-third to 40% of IPO size.
• Insurance & pension funds get 7% allocation, mutual funds retain 33%.
• Number of anchor investors will expand with issue size (5–15 per ₹250 crore).

This move broadens institutional participation in IPOs.

3. Revamped RPT Thresholds

Related-party transactions (RPTs) have been rationalized:

• Up to ₹20,000 crore turnover → 10% of turnover.
• ₹20,001–40,000 crore turnover → ₹2,000 crore + 5% of incremental.
• Above ₹40,000 crore → ₹3,000 crore + 2.5% (capped at ₹5,000 crore).

This ensures better transparency in corporate governance.

4. FPIs from IFSCs (GIFT City Boost)

SEBI has allowed retail schemes from GIFT City IFSC to register as Foreign Portfolio Investors (FPIs) even with Indian sponsors/managers.

• Sponsor contribution capped at 10% of AUM.
• Expands India’s global fund participation via GIFT City.

Read more about GIFT City IFSC regulations.

5. Alternative Investment Funds (AIF) Reforms

• New category: AI-only AIFs (for accredited investors).
• Large Value Funds (LVFs) minimum ticket size cut from ₹70 crore → ₹25 crore.
• Exemption from mandatory audits for LVFs, easing compliance.

6. SWAGAT-FI Framework for Trusted Foreign Capital

To attract sovereign wealth funds, pension funds, insurers, and central banks, SEBI launched SWAGAT-FI with:

• 10-year registration cycles (vs. 3 years).
• Single demat account.
• Exemptions from FVCI rules requiring 66% unlisted equity.

This strengthens India’s foreign capital inflows.

7. REITs & InvITs Classification Change

• REITs reclassified as equity instruments → eligible for equity indices & MF equity allocations.
• InvITs remain hybrid instruments.
• Strategic investors now include QIBs, large NBFCs, and family trusts (₹500+ crore net worth).

This change boosts real estate and infra investments.

8. Mutual Fund & Retail Investor Rules

• Exit load cap reduced from 5% → 3%.
• Distributor incentives up to 1% of inflows (₹2,000 max) for onboarding:
  • First-time investors from B-30 cities.
  • Women investors.

This promotes financial inclusion & retail participation.

9. Lighter Entry Norms for IAs & RAs

• Any graduate (any discipline) + NISM certification = eligible.
• No more address proof, CIBIL report, net worth certificate requirements.
• Until PaRRVA system goes live, advisers may share last 2 years’ performance records.

This makes it easier for new Investment Advisers (IAs) and Research Analysts (RAs) to enter the market.

10. Stronger Exchange Governance

• MIIs (like NSE & BSE) must appoint 2 Executive Directors (Risk/Compliance & Operations).
• CTO & CISO roles brought under compliance framework.
• Tightens market infrastructure governance.

Final Word: What This Means for Investors

The SEBI board meeting 2025 reflects a balancing act:

• Easier fundraising & flexibility for large companies, AIFs, and foreign investors.
• Stronger compliance & governance for exchanges and corporates.
• Protection & incentives for small investors entering the markets.

SEBI’s Chairperson, Tuhin Kanta Pandey, emphasized that surveillance and enforcement (not just new rules) will be the priority post the Jane Street episode, signaling more technology-driven market monitoring.

👉 For retail traders and investors, these reforms could mean more opportunities, safer participation, and stronger capital market growth.

If you’re keen to learn how SEBI reforms impact IPOs, mutual funds, and trading opportunities, explore our detailed Stock Market Courses at ISFM.