New Delhi, July 31 -- India's markets regulator Sebi has proposed a major overhaul of listing norms to address flagging retail investor participation in large listings.

In a consultation paper released on Thursday, the Securities and Exchange Board of India (Sebi) has suggested a flexible retail allocation framework for initial public offerings (IPOs) that are bigger than Rs.5,000 crore, allowing the retail quota to drop from 35% to as low as 25% in a staggered manner, while boosting the QIB (qualified institutional buyer) share from 50% to 60% to ensure demand stability.

The market watchdog has invited public comments till 21 August.

The proposals, which could reshape the allocation structure for domestic equities, aim to align IPO st...