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SEBI Proposes ₹1 Lakh Minimum SME IPO Applications
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Securities and Exchange Board of Indiacorporatecapital_markets

SEBI Proposes ₹1 Lakh Minimum SME IPO Applications

October 17, 2026

SEBI proposes raising minimum application value to ₹1 lakh for SME IPOs and revises trading lot and migration rules.

SEBI Seeks Feedback on ₹1 Lakh Minimum for SME IPO Applications

Building on its broader SME reform agenda, SEBI has proposed increasing the minimum application value in SME IPOs to ₹1 lakh, up from current lower thresholds. The move aims to attract more serious investors and reduce retail fragmentation in SME listings.

Achieving economies of scale in investor base and enabling viable trading lots. The regulator has also proposed allowing single-share trading lots post-listing and liberalized conditions for migration from the SME platform to the main board of stock exchanges.

Stakeholder comments are invited by 4 November 2026. If implemented, these changes may raise barriers to entry for small retail applicants but could improve post-issue market depth and stability. Legal teams advising SMEs must anticipate revised fundraising strategies and investor targeting aligned with these proposed thresholds.

SEBI Proposes ₹1 Lakh Minimum SME IPO Applications | Gatim AI Court News | Gatim AI