India News | Sebi Boards Tightens Framework for SME IPOs

New Delhi, Dec 18 (PTI) Markets regulator Sebi's board on Wednesday approved a stricter regulatory framework to strengthen the process of public issues by small and medium enterprises (SMEs).

Additionally, the board approved reforms to boost ease of doing business for Debenture Trustees, ESG rating providers, InvITs, REITs, and SM REITs, according to a statement.

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Also, the regulator has decided to overhaul investment banking norms.

With regards to SME IPO, Sebi said SMEs planning to launch an IPO must demonstrate operating profits (earnings before interest, depreciation, and tax - EBITDA) of at least Rs 1 crore in two of the three preceding financial years at the time of filing their Draft Red Herring Prospectus (DRHP).

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The reforms, approved by the Sebi's board, aim to provide SMEs with a sound track record and an opportunity to raise funds from the public while protecting investor interests.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)