The Securities and Exchange Board of India (Sebi) has proposed changes to the regulatory framework for initial public offerings (IPOs) by small and medium enterprises (SMEs), including replacing paid-up capital-based eligibility criteria with market capitalisation thresholds.
In its latest consultation paper, the regulator proposed that issuers with post-issue market capitalisation of up to Rs 1,000 crore be required to list on the SME platform. Those with market capitalisation above Rs 1,000 crore and up to Rs 4,000 crore could also opt for the SME platform, subject to additional financial reporting requirements.