Sebi proposes market cap-based SME IPO norms, seeks public comments on regulatory overhaul

What happened: Sebi proposed market cap based eligibility norms for SME IPOs, replacing the paid-up capital framework, and invited public comments on changes to the ICDR Regulations, 2018. Key numbers: SME platform for post-issue market cap up to Rs 1,000 crore; optional up to Rs 4,000 crore; comments due November 4, 2026; minimum application value cut to Rs 1 lakh; minimum Why it matters: The proposals would tighten profitability and business continuity standards while easing underwriting, market making, and trading lot rules, shifting SME listing eligibility toward market capitalisation.

Sebi proposed market cap based eligibility norms for SME IPOs, replacing the paid-up capital framework, and invited public comments on changes to the ICDR Regulations, 2018.

The proposals would tighten profitability and business continuity standards while easing underwriting, market making, and trading lot rules, shifting SME listing eligibility toward market capitalisation.