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SEBI Strengthens Issue Proceeds Monitoring
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Securities and Exchange Board of Indiacorporatedisclosurecapital_markets

SEBI Strengthens Issue Proceeds Monitoring

October 16, 2026

Proposed amendments require direct reporting of fund utilisation, stricter disclosures, and penalties for non-cooperation, strengthening SEBI’s oversight under LODR and ICDR.</p>

SEBI Proposes Enhanced Monitoring of Issue Proceeds

SEBI has issued a consultation paper in October 2026 on strengthening monitoring mechanisms for IPO and FPO proceeds. The proposals include mandatory quarterly reporting by bank agencies, direct disclosure of fund utilisation patterns, and financial penalties for non-cooperation by escrow monitors.

The draft amendments seek to align the Listing Obligations and Disclosure Requirements (LODR) with the Issue of Capital and Disclosure Requirements (ICDR) framework, mandating auditors to certify actual use of funds against stated objectives. Non-compliant entities face suspension of further fund withdrawals.

These measures enhance transparency and accountability in capital-raising exercises. Companies and their auditors must now prepare for deeper scrutiny of capital allocation and more rigorous disclosure timelines post-IPO.

Practice Areas:corporatedisclosurecapital_markets

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