SEBI proposes stricter SME IPO rules and ₹3 crore profit threshold
In short
SEBI has proposed big changes to SME IPO rules. The plan includes a ₹3 crore average operating profit threshold, a lower ₹1 lakh minimum application, and changes to offer-for-sale limits, lock-ins and market making.
This matters because smaller companies may face tougher entry rules if the changes are approved. The report does not say when the new rules would start.
What the reporting says
SEBI has proposed sweeping changes to SME IPO rules, including raising the average operating profit threshold to ₹3 crore and replacing paid-up capital criteria with post-issue market capitalisation thresholds. The proposals also include a lower ₹1 lakh minimum application, revised offer-for-sale limits, shorter lock-ins and removing compulsory market making. The reporting does not say when the rules would take effect or whether they will be approved.
Why it matters
SEBI has proposed sweeping revisions to SME IPO eligibility and listing rules, including a ₹3 crore average operating profit threshold and a shift away from paid-up capital criteria toward post-issue market capitalisation. The plan also covers application size, offer-for-sale limits, lock-in periods and compulsory market making. The source does not state approval status or implementation timing, so the impact remains prospective.