Sebi proposes key changes to streamline IPO process

Sebi proposes key changes to streamline IPO process

Analysis:

1. Objective of the Proposal: The Securities and Exchange Board of India (Sebi) has proposed amendments to simplify and streamline the Initial Public Offering (IPO) process, addressing compliance challenges and investor clarity.
2. Lock-in of Pledged Shares: Currently, all pre-issue shareholding, except promoters, must be locked in for six months post-IPO. However, pledged shares pose enforcement challenges for depositories, leading to last-minute compliance issues. Sebi proposes allowing depositories to mark pledged pre-IPO shares as non-transferable during the lock-in period, based on issuer instructions, to ease compliance.
3. Offer Document Simplification: Sebi plans to replace the mandatory abridged prospectus with a standardised offer document summary, providing investors with clearer and more concise information for decision-making.
4. Regulatory Framework: These changes would require amendments to the Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018, ensuring alignment with evolving market practices.
5. Public Consultation: Sebi has invited public comments on the proposed changes before implementing amendments, indicating a participatory approach in policy formulation.
6. Significance: The proposals aim to reduce IPO processing delays, improve transparency, and enhance ease of compliance for issuers, ultimately supporting the growth of India’s capital markets.

Static Part:

• Regulator: Securities and Exchange Board of India (Sebi)
• Event: Proposed amendments to streamline IPO processes
• Key Focus Areas: Lock-in of pledged shares, standardised offer document summary, ICDR Regulations 2018 amendments
• Public Consultation: Open for comments from stakeholders

Updated: 14 Nov 2025; 7:37 PM | Source:News on AIR