SEBI Forms Working Group to Review IPO and Capital-Raising Rules

SEBI has formed a working group to examine the rules companies follow when raising money through the securities market, as per news reports. 

The review covers the SEBI Issue of Capital and Disclosure Requirements (ICDR) Regulations, which govern IPOs, follow-on public offerings (FPOs), rights issues and preferential issues, among other securities offerings. 

Existing Requirements Under Review 

The group's mandate includes simplifying regulatory requirements, removing provisions that duplicate existing rules and refining the language of the regulations. 

The ICDR framework covers eligibility conditions, disclosures, pricing, allotment and procedural requirements for companies and intermediaries involved in securities issues. 

Listing Rules Also Part of SEBI's Review 

SEBI Chairman Tuhin Kanta Pandey had earlier announced that the regulator would review the ICDR Regulations alongside the Listing Obligations and Disclosure Requirements (LODR) Regulations. 

While ICDR governs capital raising, LODR sets out the listing and disclosure obligations of companies whose securities are listed. 

Separate Proposals for SME IPOs and Public Issue Funds 

SEBI has also floated a consultation paper on monitoring the use of money raised through public issues. The proposal concerns oversight of how companies utilise funds collected from investors. 

Separately, the regulator has proposed changes to the SME IPO framework, including a review of eligibility criteria and other requirements. These are separate initiatives from the working group's review of the ICDR Regulations. 

Read More: Reliance Industries Share Price in Focus Ahead of Jio Platforms IPO! 

Conclusion 

The review adds to SEBI’s ongoing efforts to simplify capital-market regulations, with IPO rules, public issue funds and SME listings all under separate reviews. 

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