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SEBI Tightens Monitoring of Issue Proceeds
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Securities and Exchange Board of Indiacorporatecapital_marketscompliance

SEBI Tightens Monitoring of Issue Proceeds

October 18, 2026

SEBI proposes direct reporting by agencies on issue proceeds, stricter disclosures, and penalties for non-compliance to prevent diversion of funds.

SEBI Tightens Monitoring of Issue Proceeds

SEBI has issued a consultation paper proposing enhanced monitoring mechanisms for the utilization of funds raised through public and rights issues. Under the proposal, agencies such as merchant bankers and trustees will be required to submit periodic reports directly to SEBI on fund deployment.

The regulator also proposes aligning disclosure norms between the LODR and ICDR frameworks, mandating real-time updates on deviations from stated objectives. Entities found non-cooperative or in violation may face monetary penalties. The move follows instances of misutilization of IPO proceeds and delayed project execution.

These measures aim to strengthen accountability and ensure investor funds are used for intended purposes. The consultation closes on November 3, 2026, and may lead to significant updates in post-issue compliance requirements for listed entities.

Citations

  • SEBI Consultation Paper on Issue Proceeds Monitoring, October 2026
Practice Areas:corporatecapital_marketscompliance

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