SEBI initiates special one-year window for transfer and dematerialization of physical shares; get information

The Securities and Exchange Board of India (SEBI) recently introduced a one-year special window from February 5, 2026 to February 4, 2027 to support startup companies seeking to raise funds through a public issue. This initiative aims to ease the listing process for startups and enable them to access the capital markets more efficiently.

The special window provided by SEBI offers certain relaxations and exemptions for startups looking to go public. These include reduced eligibility criteria for the Minimum Public Shareholding (MPS) requirement and a streamlined process for disclosures and filings. By simplifying these requirements, SEBI aims to encourage more startups to consider going public and raise capital through the stock market.

One of the key highlights of this special window is the relaxation of the MPS norms for startup companies. SEBI has reduced the requirement of the MPS from 25% to 10% for startups, allowing them to maintain a higher promoter holding post the public issue. This exemption provides startups with more flexibility in structuring their shareholding patterns and reduces the pressure to dilute promoter stakes significantly.

In addition to the relaxed MPS norms, SEBI has also simplified the process for disclosures and filings for startups during the special window. Startups will be able to file their offer documents with SEBI and the stock exchanges simultaneously, expediting the listing process. This streamlined procedure will help startups save time and resources, making it more attractive for them to access the capital markets.

The introduction of the special window by SEBI reflects their commitment to supporting the growth and development of startup companies in India. By providing these relaxations and exemptions, SEBI aims to create a more conducive environment for startups to raise funds and expand their businesses. This initiative is expected to boost the confidence of startup founders and investors alike, driving more innovation and entrepreneurship in the Indian startup ecosystem.

Overall, the special window announced by SEBI is a positive step towards promoting the listing of startups in India. By simplifying the listing process and providing certain relaxations, SEBI is facilitating easier access to capital markets for startups. This initiative is likely to spur more startups to consider going public and harness the benefits of raising funds through the stock market. With SEBI’s support, startup companies in India are poised to thrive and contribute to the growth of the economy.