SEBI’s SME IPO proposal calls for a larger minimum application size, a 20% OFS limit, and more allottees

On November 19, SEBI released a consultation paper proposing changes to the SME listing framework. Key recommendations include increasing the minimum application size to Rs 2 lakh, introducing a “draw of lots” allotment method for non-institutional investors, and limiting the Offer for Sale (OFS) portion to 20-25% of the total issue size