SEBI Board Meeting September 2025 - What It Means for India’s Capital Markets
The Securities and Exchange Board of India (SEBI) held its board meeting on September 12, 2025, and rolled out a series of transformational reforms for India’s capital markets. These reforms focus on enhancing investor access, simplifying compliance, improving governance, and attracting global participation.
At ASB Growth Ventures, we see these reforms as a major leap toward building a more transparent, inclusive, and efficient financial ecosystem. Whether you are a foreign investor, a company planning an IPO, or a fund manager exploring alternative investments, these regulatory changes create new pathways for growth and innovation.
1. SWAGAT-FI Framework - Making Foreign Investments Easier
SEBI approved the Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework.
Key Features
- A unified registration process for Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs).
- A single-window entry system, removing redundant compliance steps.
- A dedicated track for low-risk investors like sovereign wealth funds, central banks, government-owned funds, multilateral agencies, and highly regulated institutions.
Why It Matters
This framework directly addresses inefficiencies in India’s investment entry system. It reduces paperwork and delays, making India more attractive to large global funds.
For ASB Growth Ventures, this is a game-changer—we can now support foreign investors with cross-border investment structuring, compliance advisory, and market-entry strategies.
Implementation Timeline: Six months from SEBI’s approval date.
2. Relaxed IPO Norms for Large Enterprises
New Structure
- Tier 1: Market Cap ₹50,000 crore – ₹1 lakh crore
- MPO: ₹1,000 crore or minimum 8% of post-issue capital.
- MPS compliance: Extended to 5 years (previously 3 years).
- Tier 2: Market Cap ₹1 lakh crore – ₹5 lakh crore
- MPO: ₹6,250 crore or minimum 2.75% of post-issue capital.
- MPS compliance: Extended to 10 years.
- Tier 3: Market Cap above ₹5 lakh crore
- MPO: ₹15,000 crore or minimum 1% dilution.
- MPS compliance: Longer timelines as per new provisions.
Impact
This reform ensures that mega-cap companies can enter public markets with flexibility, while investors still benefit from liquidity.
For IPO advisory and valuation professionals, including our team at ASB Growth Ventures, this introduces new methodologies for structuring and valuing IPOs, especially for India’s largest enterprises.
3. Alternative Investment Fund (AIF) Framework Enhancements
SEBI has expanded opportunities within the AIF ecosystem.
Key Changes
- Introduction of Accredited Investor-only (AI-only) schemes.
- Reduction of Large Value Fund (LVF) minimum investment from ₹70 crore to ₹25 crore.
Why It Matters
This reform strengthens India’s alternative investment landscape, opening avenues for high-net-worth individuals (HNIs) and institutions to diversify portfolios.
At ASB Growth Ventures, we see a growing demand for alternative asset allocation strategies, and this change allows us to better serve clients looking for innovative investment products.
4. REITs Reclassified as Equity Instruments
In a major shift, SEBI has reclassified Real Estate Investment Trusts (REITs) as equity instruments instead of hybrid instruments.
Implications
- REITs will be treated like equity shares for regulatory purposes.
- Compliance and reporting become more streamlined.
- Advisors gain greater clarity for portfolio allocation and risk assessment.
Why It Matters
This makes REITs more appealing for investors, especially those with equity allocation mandates. For ASB Growth Ventures, this reform allows us to integrate real estate-backed investments into mainstream equity strategies.
5. Stronger Governance for Market Infrastructure Institutions (MIIs)
New Requirements
- Appointment of two new Executive Directors at MIIs.
- One Director to oversee operations.
- Another Director to handle regulation and grievance redressal.
Why It Matters
This ensures better oversight, transparency, and accountability at the heart of India’s financial infrastructure.
6. Regional Office Expansion: Bringing SEBI Closer to Investors
Strategic Impact
- Stronger market supervision in diverse regions.
- Improved investor education and awareness.
- Better accessibility for compliance and grievance handling.
For ASB Growth Ventures, this decentralization allows us to collaborate more closely with clients in tier-2 and tier-3 cities, where capital market participation is rising.
7. Centralized Information Portal for Foreign Investors
SEBI will soon launch a dedicated website for Foreign Portfolio Investors.
Features
- Consolidated access to all regulatory requirements.
- A user-friendly, transparent information hub.
- Easier navigation for global investors exploring India’s markets.
This step is in line with global standards of transparency and will further boost India’s attractiveness as an investment destination.
Broader Market Impact of SEBI’s Reforms
1. Enhanced Market Accessibility
The SWAGAT-FI framework and relaxed IPO norms make it easier for foreign investors and large companies to participate in India’s markets.
2. Compliance Simplification
By removing redundant regulations and introducing unified frameworks, SEBI has reduced regulatory costs and administrative burdens, especially for institutional investors.
What This Means for Advisory Professionals
For Investment Advisors
- Greater opportunities in cross-border structuring.
- More avenues to guide investors in alternative products.
- Demand for compliance consulting will rise.
For Valuation Experts
- IPO valuation frameworks need recalibration.
- REITs will now require equity-aligned valuation methods.
- Mega IPOs create scope for large-scale advisory projects.
For Compliance Consultants
- New frameworks demand updated advisory practices.
- Expanded SEBI presence means localized consulting opportunities.
- Greater demand for regulatory risk management services.
At ASB Growth Ventures, our team is already preparing training modules, client education materials, and compliance checklists to help businesses adapt smoothly.
Implementation Challenges and Considerations
1. Timeline Management
The SWAGAT-FI framework comes into effect in six months. Advisors must proactively prepare clients.
2. Documentation Readiness
Unified processes demand standardized documentation. At ASB Growth Ventures, we’re developing templates to ease transitions.
3. Training and Capacity Building
Advisory professionals must stay updated. We recommend continuous training to stay ahead of SEBI’s evolving standards.