SEBI approves PSU delisting, FPI bond relief, and IPO norm reforms

Markets regulator SEBI has approved a new voluntary delisting framework for PSUs where government holding exceeds 90 per cent 
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Markets regulator SEBI’s board on Wednesday cleared a host of proposals, including the introduction of a separate voluntary delisting framework for public sector undertakings (PSUs), where the government holds over 90 per cent stake.

Additionally, the board decided to ease compliance rules for foreign portfolio investors (FPIs), who invest only in Indian government bonds (IGBs).

Among others, the SEBI board cleared a proposal to allow startup founders, identified as promoters, to retain ESOPs granted one year before the company’s IPO plan and rationalisation of the content of the QIP placement document by listed entities.

Also, Sebi mandates select shareholders, including directors and key managerial personnel, to hold shares in demat form before filing an IPO document, according to a statement issued by the regulator after the conclusion of the board meeting.

This was the second board meeting under the chairmanship of Tuhin Kanta Pandey, who assumed office on March 1.

Published on June 18, 2025