The Securities and Exchange Board of India (SEBI) has reportedly constituted a working group to examine regulations governing public offerings and other capital-raising activities, as part of efforts to simplify compliance requirements.
According to a Moneycontrol report citing industry sources, the group will review the SEBI (Issue of Capital and Disclosure Requirements) Regulations, commonly known as the ICDR Regulations.
The exercise will cover initial public offerings (IPOs), follow-on public offerings (FPOs), preferential issues, rights issues and other securities issuance mechanisms.
The proposed review aims to make India’s capital market regulations clearer and more efficient for companies seeking to raise funds.
SEBI Working Group To Review ICDR Regulations
Industry sources indicated that the working group would identify provisions that could be simplified or eliminated without compromising regulatory oversight.
Its responsibilities include removing overlapping requirements, reducing unnecessary procedural complexities and improving the wording of existing regulations.
The ICDR framework currently establishes eligibility conditions, disclosure standards, pricing requirements, allotment procedures and other obligations for issuers and market intermediaries.
Changes to these provisions could influence how companies approach public fundraising and other securities offerings.
SEBI Chairman Tuhin Kanta Pandey had previously announced plans to review both the ICDR framework and the SEBI (Listing Obligations and Disclosure Requirements) Regulations.
The latter govern compliance, reporting and disclosure responsibilities for listed companies. The latest initiative follows the regulator’s broader push to modernise securities market rules and streamline regulatory processes.
Regulator Also Reviews SME IPOs, Fund Utilisation Rules
Alongside the ICDR review, SEBI has proposed changes to the monitoring of funds raised through public issues.
A consultation paper outlines possible revisions to the existing framework for overseeing how companies utilise issue proceeds.
The regulator has separately sought feedback on proposed amendments to rules governing small and medium enterprise (SME) IPOs.
That consultation examines eligibility criteria and other requirements applicable to smaller companies accessing public markets.
These initiatives reflect SEBI’s continuing examination of capital-raising regulations across different market segments.
The working group’s recommendations could eventually lead to amendments affecting public offerings, preferential allotments and rights issues.
However, the review remains at an early stage, and no final regulatory changes have been announced.