# SEBI panel to review mainboard IPO rules, SME overhaul proposed 2026-10-19T21:01:19+00:00 | Governance | Indian Opinion Desk Corroboration: 2 independent outlets The Securities and Exchange Board of India (SEBI) plans to set up a working group under its Primary Markets Advisory Committee (PMAC) to review the ICDR regulations governing mainboard IPOs and further public offers (FPOs), according to an email sent to PMAC members on 12 October. The sub-group will examine chapters II, IIA and IV of the ICDR Regulations, 2018, which cover eligibility conditions, pricing, promoter lock-in and FPO provisions. Separately, SEBI has proposed removing compulsory market-making and 100% underwriting for SME IPOs, as part of a broader overhaul. The regulator has also suggested lowering the minimum SME IPO application value from Rs 2 lakh to Rs 1 lakh and raising the minimum average operating profit requirement to Rs 3 crore a year over three years, from the existing Rs 1 crore in two years. The proposals are open for public comments until 4 November. Experts cited by The Hindu Businessline said the removal of market-making could cut costs but may hurt liquidity, leaving investors dependent on actual demand. Livemint reported that SEBI’s broader review comes amid a surge in SME listings: 80 companies listed on SME platforms in the July-September 2026 quarter, raising Rs 3,791.67 crore. The PMAC sub-group’s formation is subject to approval by SEBI’s competent authority. ## Indian Opinion Analysis The Hindu Businessline leads with expert warnings about liquidity risks from removing compulsory market-making in SME IPOs, quoting advocates who flag exit difficulties. Livemint focuses on the process of forming a PMAC working group to review mainboard ICDR rules, framing the SME overhaul as a separate but parallel effort. Both outlets report the same SEBI proposals neutrally, but Businessline emphasises investor protection concerns while Livemint foregrounds the regulatory machinery and committee procedures. The balanced reading: SEBI is pursuing two tracks, easing SME listing costs while tightening eligibility, and the working group’s mandate will determine whether mainboard rules see similar changes. The next step is the 4 November deadline for public comments on the SME proposals. ## Coverage Coverage: 2 sources, 2 neutral - thehindubusinessline.com (neutral report) Leads with expert quotes on liquidity risks but reports SEBI proposals without editorialising - livemint.com (neutral report) Focuses on PMAC working group formation, reports SME changes as separate development This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Tags: BSE, ICDR Regulations, NSE, PMAC, SEBI Canonical: https://indianopinion.org/sebi-panel-to-review-mainboard-ipo-rules-sme-overhaul-proposed/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/sebi-panel-to-review-mainboard-ipo-rules-sme-overhaul-proposed/#story-in-brief How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/