India's markets regulator on Friday made it easier for sovereign-backed and overseas retail funds to access the local markets through a single-window clearance system.
The board of the Securities and Exchange Board of India, which met in Mumbai, also reduced the proportion of shares large companies looking to list must sell and announced simpler disclosures for low-value transactions between interconnected entities, or "related parties".
Outflows from Indian markets have accelerated in recent months, pressured by steep U.S. tariffs, weak corporate earnings, and higher valuations versus Asian and emerging market peers. Foreign investors have withdrawn $11.7 billion from Indian equities and debt so far in 2025.
Overseas investors access Indian markets through multiple routes, with compliance requirements differing based on the type of investor, their structure and the assets they hold.
The regulator lowered the proportion of shares large companies looking to list must sell to 2.5% of the share capital from 5%, provided their market capitalisation is more than 5 trillion rupees after the IPO. This will make it easier for the market to absorb the sizeable offerings, SEBI said.
The regulator has been fastracking clearances in the world's second-largest IPO market, which is expected to notch a record fundraise of about $20 billion in 2025.
SEBI also relaxed the deadline for large companies to meet the 25% public float requirement to five years from three years.
Firms with a post-listing market cap exceeding 1 trillion rupees will be allowed up to 10 years to comply with the norm, it said.
