MUMBAI, Aug. 20 -- India's market regulator is rethinking the rules for very large initial public offerings (IPOs), a move that could reshape how companies such as Reliance Jio, Flipkart, and LG Electronics list.

The Securities and Exchange Board of India (Sebi) on Monday unveiled a five-tier framework aimed at easing IPO regulations for mega issuers, cutting minimum public offer requirements and extending timelines for reaching mandated public shareholding from five to ten years.

The changes are designed to make trillion‑rupee floats more manageable in a market where sudden dilution can create an "overhang," weighing on prices even for fundamentally strong companies. But critics warn the new rules could produce wafer‑thin f...