SEBI New Listing Rules: Under the new change, now big companies will be able to offer minimum number of shares to the public at the time of listing…
highlights
- To make mega IPO of big companies easier, the government has made important changes in the rules related to public shareholding.
- Under the new change, now big companies will be able to offer minimum number of shares to the public at the time of listing.
- The Finance Ministry has made this amendment through the Securities Contracts (Regulation) Amendment Rules, 2026.
The Finance Ministry has made this amendment through the Securities Contracts (Regulation) Amendment Rules, 2026. This change has been made in Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, which prescribes the minimum number of shares to be offered to the public during listing on a stock exchange.
IPO Listing: Big decision of the government
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The government says the purpose of this change is to encourage big companies to enter the capital market, while also ensuring that public shareholding reaches the standard 25% level over time.
New framework based on post-issue capital
In the new rules, different categories have been created according to the post-issue capital of the companies (based on the offer price)-
Companies up to Rs 1,600 crore
As before, at least 25% shares will have to be offered to the public. There has been no change in the rules in this category.
Rs 1,600 crore to Rs 4,000 crore
These companies will have to offer shares worth at least Rs 400 crore to the public.
Rs 4,000 crore to Rs 50,000 crore
At least 10% shares will have to be offered to the public at the time of listing. This will have to be increased to 25% within 3 years.
Rs 50,000 crore to Rs 1 lakh crore
At least Rs 1,000 crore worth of shares and 8% public shareholding will be required at the time of listing. Will have to increase by 25% in 5 years.
Rs 1 lakh crore to Rs 5 lakh crore
2.75% public shareholding will be required at the time of listing. Shares worth at least Rs 6,250 crore will have to be offered.
More than Rs 5 lakh crore
Shares worth at least Rs 15,000 crore will have to be offered to the public. 1% public shareholding will be mandatory at the time of listing.
Deadline to increase public shareholding
If the public shareholding is less than 15% at the time of listing, then it will have to be increased as follows-
- 15% in 5 years
- 25% in 10 years
If the shareholding is 15% or more at the time of listing, it will be mandatory to increase it to 25% within 5 years.
Other important changes
Regardless of the size of the company, it will be mandatory to give at least 2.5% shares to the public. Companies which have issued shares with Superior Voting Rights (SVR) will also have to be listed on the same stock exchange during the IPO.
Already listed companies will also get the benefit of the deadline fixed under these rules, however, if it is not implemented, the stock exchange can impose penalty.
What will be the impact on the market and investors?
According to experts, the new rules will make it easier for very big companies to launch mega IPOs. This may increase the participation of large corporate groups in the Indian capital market and may also provide new opportunities to investors.
This major change could pave the way for a big initial public offering (IPO) of Reliance Jio and the National Stock Exchange (NSE). It has implemented a framework that allows larger companies to place a small portion of equity shares during an IPO.
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