New Delhi, Oct. 21 -- The Securities and Exchange Board of India (SEBI) has proposed a major overhaul of the SME IPO framework, including stricter profitability criteria, revised listing norms, lower application sizes and changes to shareholding lock-in requirements.

In a consultation paper, the regulator proposed raising the minimum operating profit requirement to an average of Rs 3 crore annually over the preceding three financial years, from Rs 1 crore in at least two of the three years.

Public comments have been invited by November 4.

Revised Eligibility And Listing Norms

SEBI has proposed replacing paid-up capital-based eligibility criteria with post-issue market capitalisation thresholds. Companies valued up to Rs 1,000 crore wo...