SEBI May Expand Monitoring Framework For IPO, QIP And Rights Issue Proceeds

The Securities and Exchange Board of India (SEBI) is considering changes to the rules that govern monitoring of funds raised through Initial Public Offerings (IPOs), Qualified Institutional Placements (QIPs) and Rights Issues. The review comes after concerns about delays in disclosures and gaps in reporting by some companies.  

Currently, companies must appoint a SEBI-registered monitoring agency only when the fresh issue size exceeds ₹100 crore. The regulator is examining whether to lower this threshold to ₹50 crore or remove it, which would bring more fundraisings under supervision. 

Fresh Issue Trends In 2025 

As per news reports, in 2025, 103 companies raised about ₹1.75 trillion through mainboard IPOs. Of this, ₹64,419 crore, or roughly 37%, came from fresh issues. Among smaller firms, reliance on fresh capital was higher. A total of 267 companies raised ₹11,455 crore through SME IPOs, with ₹10,413 crore coming from fresh issues. 

Only three mainboard IPOs last year had fresh issue sizes below ₹100 crore. However, investment bankers said many of the more than 200 IPO filings in 2025 could involve fresh issues below that level. 

Delays In Reporting Flagged 

Under the current system, monitoring agencies submit quarterly reports to the issuing company. The company is required to file these with stock exchanges within 45 days of the end of the quarter. 

In some cases, companies have delayed submissions or not shared information with monitoring agencies. There have also been instances where monitoring fees were not paid, which slowed the process. 

A SEBI panel has suggested allowing monitoring agencies to submit reports directly to stock exchanges within the 45-day timeline. 

Penalties For Non-Cooperation 

At present, companies may face a fine of ₹50,000 for not cooperating with monitoring agencies. The regulator is also considering stricter action for repeated lapses. 

Monitoring reports track how funds are used against stated objectives such as expansion, debt repayment or working capital. 

Read More: SEBI Proposes Reducing Minimum Investment in Social Impact Funds! 

Conclusion  

If implemented, the revised rules would bring more issuers under monitoring and alter the reporting process for fund utilisation. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
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