SEBI forms working group to review mainboard IPO, FPO and other issuance regulations

The review will cover IPOs, FPOs, preferential issues and rights issues, among other issuances, the industry sources said. Sources said, the group's mandate includes easing and simplifying regulatory requirements, removing duplicative provisions and refining the language of the ICDR Regulations to make the framework clearer and more efficient. SEBI Chairman Tuhin Kanta Pandey had earlier announced that the regulator would undertake a review of both the ICDR Regulations and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, which govern the listing and disclosure obligations of listed companies.

The latest move comes amid SEBI's broader efforts to review and streamline regulations governing capital markets. The regulator has also floated a consultation paper on monitoring the utilisation of proceeds raised through public issues, proposing changes to the framework governing the oversight of funds raised by companies through securities issuances. Separately, SEBI has proposed changes to the regulatory framework for small and medium enterprise (SME) IPOs.

The consultation paper seeks to review the existing norms governing SME public issues, including eligibility criteria and other requirements. The ICDR Regulations prescribe requirements for companies seeking to raise capital from the public or through other securities issuance routes. These include eligibility criteria, disclosure requirements, pricing and allotment norms, and procedural obligations for issuers and intermediaries.

The working group's review could pave the way for changes to the regulatory framework governing capital raising in securities markets. An email sent to SEBI seeking comments could not be immediately answered.