The central government has made an important change in the rules related to Initial Public Offerings (IPOs).
The new rules are designed to make it easier for very large companies to get listed on the stock market.
Under the new system, companies with very high valuations will now be allowed to offer a smaller portion of their shares to the public during an IPO compared to earlier rules.
This change is expected to benefit companies that are worth lakhs of crores of rupees.
New Rules to Make Mega IPOs Easier
The change has been introduced through the Securities Contracts (Regulation) Amendment Rules, 2026, which were notified by the Ministry of Finance.
Under this updated framework, the government has introduced a graded structure.
This means that very large companies will not be required to offer a large percentage of shares to the public immediately when they launch their IPO.
Earlier, companies had to follow stricter rules regarding the minimum number of shares offered to the public.
Now, mega companies will have more flexibility while entering the stock market.
SEBI Approved the Proposal Earlier
This proposal had already been approved by the Securities and Exchange Board of India in September 2025.
After that approval, the Finance Ministry officially notified the rule change.
According to the government, the main aim of this new framework is to make the IPO process easier for large companies while still ensuring that public shareholding gradually increases.
Over time, these companies will still need to increase public ownership to the standard 25% public shareholding requirement, but they will now get more time and flexibility to reach that level.