SEBI Implements Stricter IPO Rules for SMEs, Expands Algorithmic Trading Framework, and Adds 17 New Events

The Securities and Exchange Board of India (SEBI) has introduced a series of regulatory changes aimed at enhancing investor protection and market integrity. Following the approval of new rules, the National Stock Exchange (NSE) has implemented stricter eligibility norms for Small and Medium Enterprises (SMEs) seeking to list through initial public offerings (IPOs). This move is intended to safeguard retail investors' interests. Additionally, SEBI is working on a revised framework for algorithmic trading and has expanded the definition of Unpublished Price Sensitive Information (UPSI) to include 17 new material events. The regulator has also mandated a uniform policy for data sharing among stock exchanges and clearing corporations for research purposes. Furthermore, SEBI has codified a public-consultation process for new regulations, allowing for public comments over a minimum period of 21 days. These changes reflect SEBI's ongoing efforts to adapt to market dynamics and improve the trading environment in India.