SEBI Board Meeting Live Updates: Insurance Cos, pension funds in reserve category for IPO anchor book

– Life Insurance companies and Pension Funds to be included in the reserved category for IPO anchor book.

– Reserved limit for anchor portion in the IPO increased to 40% from one-third of the IPO size.

For companies with a market capitalisation of over ₹5 lakh crore, SEBI has called for a minimum public offer size of ₹15,000 crore or 1%.

In case the public shareholding is less than 15% on the day of listing, the 15% minimum shareholding will have to be achieved in five years and 25% in 10 years.

If public shareholding is above 15% or above, Minimum shareholding of 25% will have to be achieved in five years.

For companies that have a market cap between ₹1 lakh crore and ₹5 lakh crore, SEBI has called for a minimum public offer of up to ₹6,250 crore or ₹2.75% of the post-issue market capitalisation.

At the conclusion of its board meeting, market regulator SEBI has opined that for companies with a market capitalisation between ₹50,000 crore to ₹1 lakh crore, the Minimum Public Shareholding norms of 25% could now be achieved in five years in comparison to the current three years.

– SEBI plans a transition to monthly expiries, with a defined glide path

– SEBI may consider same day expiry across all exchanges

– Consultation with exchanges to start soon

#Sources

We also feel that valuations for BSE & Nuvama are reasonable at 38x & 18x FY27E P/E (base case), so we don’t see a material de-rating.

SEBI Presser to start soon, with chairman Tuhin Kanta Pandey briefing about all the key decisions from the board meeting.

Stay tuned to CNBC-TV18 all news, updates and more.

CNBC-TV18 had reported on Thursday that the regulator is likely to issue a consultation paper by next month with regards to the weekly expiry and have a glide path towards a monthly expiry.

Stay tuned for all news, updates and more

There is a lot of speculation regarding potential changes to F&O expiries, some tweaks to IPO norms, and more such measures.

CNBC-TV18 reported exclusively about this on Thursday about the weekly expiries.

More on this in upcoming updates.

In this scenario, in case SEBI opts for a monthly expiry on the same day, the industry notional ADTO falls by 80%, premium falls by 70%.

However, BSE’s market share may fall to 18% and options revenue for FY27 could be hit by 80%, leading to a consolidated revenue impact of 46% and a net profit hit of 50%, according to Jefferies.

Crucially, SEBI has retained the retail quota at 35% for IPO allocations, reversing an earlier plan to reduce it to 25% for large issuances.

The regulator said the proposals aim to promote capital formation, ease fundraising for issuers, and expand investor access to marquee listings.

Stakeholders were supposed to submit comments until September 8.

In case SEBI opts for a monthly expiry with separate days for both BSE and NSE, the industry notional ADTO declines by 80%, while the premium ADTO declines by 70%, according to Jefferies.

In such a scenario, BSE’s market share will remain stable, but options revenue in financial yea 2027 may decline by 67%, thereby impacting consolidated revenue by 39% and profit by 41%, Jefferies wrote.

The impact of any potential expiry change could primarily impact Nuvama’s asset services segment, according to Jefferies, who expects a profit impact of nearly 15% in the first two scenarios and nearly 25% in the third and fourth scenario, which we will highlight in upcoming posts.

Higher cash margins and cost control can insulate profit, Jefferies wrote.

In case fortnightly expiries with same day are placed, Jefferies expects industry notional ADTO to fall 55% and premium ADTO to fall by 45%.

However, unlike the first scenario, BSE’s market share may fall to 20%.

For financial year 2027, Jefferies expects BSE’s options revenue to fall by 67%, leading to its consolidated revenue declining by 39% and profit by 41%.

For companies with a post-issue market capitalisation above ₹1 lakh crore, SEBI has proposed a phased framework for minimum public shareholding compliance.

If public shareholding at the time of listing is below 15%, issuers will be required to raise it to at least 15% within five years of listing, and further to the mandated 25% within ten years.

In case, public shareholding is above 15% as on the date of listing, MPS of 25% to be achieved within 5 years from date of listing.

For firms valued above ₹1 lakh crore but up to ₹5 lakh crore, SEBI has proposed a revised minimum public offer of ₹6,250 crore and at least 2.75% of post-issue share capital, compared with the current 5%.

Companies exceeding ₹5 lakh crore in market capitalisation would need to offer at least ₹15,000 crore and 1% of post-issue capital, subject to a minimum dilution of 2.5%.

SEBI has proposed reducing minimum share sale requirements for large IPOs and extending compliance timelines for public float, aiming to ease listing hurdles while retaining the retail quota at 35%.

According to a consultation paper released last month, companies with a post-issue market capitalisation between ₹50,000 crore and ₹1 lakh crore may see their minimum public offer cut from 10% to 8% of post-issue share capital.

SEBI keeps fortnightly expiry with separate days for BSE and NSE. As per this scenario, Jefferies believes that the industry index options notional Average Daily Turnover falls by 55% and premium Average Daily Turnover falls by 45%.

In such a scenario, BSE’s market share remains stable at 28%, but options revenue in financial year 2027 falls by 38%, leading to its consolidated revenue declining 22% and net profit by 21%, according to Jefferies.

BSE MD & CEO Sundararaman Ramamurthy had said that regulatory policy in Inia is a continuously evolving process and that they would wait for the regulator to formulate a view on reports related to the removal of the weekly expiry.

He had also mentioned that based on the data available, he cannot conclude that options volumes have peaked in India and that BSE is currently focussed on diversification of revenue streams, instead of improving margins.

Speaking at the FICCI Annual Capital Market Conference on August 21, SEBI Chairman Tuhin Kanta Pandey said that there is a need to increase the tenure of equity derivatives.

After Pandey’s remarks, shares of both BSE and Angel One had declined up to 8%.

– SEBI plans a transition to monthly expiries, with a defined glide path

– SEBI may consider same day expiry across all exchanges

– Consultation with exchanges to start soon

CNBC-TV18 had reported on Thursday, that the regulator is likely to issue a consultation paper by the next month with regards to the weekly expiry and have a glide path towards a monthly expiry.

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SEBI Board Meeting Live Updates: Insurance Cos, pension funds in reserve category for IPO anchor book