SEBI is instituting a mechanism where independent monitoring agencies verify that issuers utilize capital proceeds strictly according to their stated objectives. For the SME sector, the regulator is actively working to compress issuance costs, update classifications, and enhance trading liquidity. Furthermore, the authorities intend to detect and weed out listed shell companies lacking genuine economic operations to safeguard investors. This scrutiny unfolds as the primary market remains buoyant, recording 294 listings in 2026 after a historic 376 debuts in 2025.
Key points
Independent agencies will be deployed to actively monitor whether listing proceeds are ut…: Independent agencies will be deployed to actively monitor whether listing proceeds are utilized as initially disclosed.
The regulator intends to protect capital markets by systematically identifying and removi…: The regulator intends to protect capital markets by systematically identifying and removing listed companies operating without economic activity.
Issuers currently benefit from regulatory relief extended through March 2027 that permits…: Issuers currently benefit from regulatory relief extended through March 2027 that permits adjustments to IPO sizes without additional compliance.
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The SEBI is reviewing the framework governing initial public offerings (IPOs), follow-on public offerings (FPOs), and small and medium enterprise (SME) listings, the regulator Tuhin Kanta Pandey said at NDTV Profit Ignite on Wednesday.
As reported by NDTV, Pandey said India ranked first globally by the number of IPOs in 2025, highlighting the depth of the country’s primary market. However, he indicated that more companies could raise capital by listing on stock exchanges.
Earlier this month, the market regulator extended its relief to initial public offering (IPO) issuers, allowing them to change their issue size without additional compliance until March 2027.
Pandey stressed the need to make IPO disclosures easier for ordinary investors to understand. SEBI is also working on a system under which third-party monitoring agencies would report to stock exchanges on whether companies are using IPO proceeds for the purposes stated in their offer documents.
Pandey also suggested that industry associations and chambers of commerce could help identify promising businesses and prepare them for listing, potentially widening the pool of companies accessing the capital markets.
Personal consumption expenditures data reveals an acceleration in consumer prices across the United States economy. This upward movement indicates persistent inflationary pressure that directly challenges recent central bank policy strategies. Consequently, monetary authorities will face difficulty maintaining a prolonged pause on their cycle of interest rate hikes.
Robust domestic momentum accelerated during the third quarter, producing the nation's strongest gross domestic product expansion seen in that multi-year window. This rapid climb was fueled predominantly by surging investments in artificial intelligence alongside high-income households sustaining elevated purchasing levels. Together, these specific catalysts underpinned the broad national surge.
Robust economic activity drove output past consensus estimates of a 3.1% annualized expansion, reflecting surprising resilience across the domestic landscape. However, concurrent price pressures threaten to complicate financial conditions as consumer cost indices climbed alongside the broader expansion. This combination leaves policymakers facing persistent underlying price gains despite healthy overall output.