Sebi amends rules to tighten SME IPO norms

Sebi has announced stricter regulations for SME IPOs, requiring a minimum operating profit of ₹1 crore for two of the last three years and capping OFS at 20%. Promoters’ excess shareholding will be subject to a lock-in period, and the minimum application size for SME IPOs has been increased to two lots. Additionally, funds raised cannot be used to repay loans from promoters, promoter groups, or related parties.

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