Govt Eases IPO Norms for Mega Companies: Graded Public Shareholding Framework Introduced

• Central government amends minimum public shareholding (MPS) rules for mega IPOs, introducing a graded framework.
• New Securities Contracts (Regulation) Amendment Rules, 2026, allow large companies to offer smaller initial public portions.
• Framework tiers based on post-issue capital: from 25% for small firms to 1% for very large ones (above ₹5 lakh crore).
• Companies must eventually increase public shareholding to 25% within 3, 5, or 10 years, depending on size and initial MPS.
• Mandates listing of Superior Voting Rights (SVR) shares with ordinary shares; past non-compliance may incur penalties.