SEBI to Expedite IPO Approvals and Ease Regulations: Report

The Securities and Exchange Board of India (SEBI) is cutting the time taken to approve initial public offerings (IPOs), as per the news reports. The regulator now plans to clear most applications within three months of filing. 

Earlier, companies often waited as long as 6 months for approvals.

Use of AI and Coordination with Bankers

To manage faster clearances, SEBI is using artificial intelligence tools to scan IPO documents for gaps and errors. The regulator is also coordinating more closely with merchant bankers to reduce the back-and-forth on clarifications.

IPO Fundraising So Far

Indian companies have raised $8.2 billion through IPOs up to August 2025. In comparison, firms raised $20.5 billion in 2024, making India the second-largest IPO market globally after the U.S., according to LSEG data.

Pipeline of Offers

Public issues worth nearly $13 billion have already been approved, while another $18.7 billion are awaiting SEBI’s nod, data from PRIME Database shows. Upcoming IPOs include the Indian arm of LG Electronics, Credila Financial Services, Physicswallah, and WeWork India Management.

Rise in Confidential Filings

17 companies have chosen the confidential filing route so far this year, compared with only 4 between 2022 and 2024. This option allows limited disclosures before companies go public.

Investor Participation in IPOs

As per news reports, despite outflows in the secondary market, foreign investors have bought about $4.7 billion worth of shares through IPOs. SEBI has also allowed startup founders to retain employee stock options (ESOPs) granted at least a year before filing draft IPO papers.

Read more: Groww Secures SEBI Nod for IPO: Plans to Raise Up to $1 Billion!

Conclusion

By shortening timelines and adjusting processes, SEBI is moving to keep IPO activity steady. With a strong pipeline in place, 2025 could see fundraising levels close to or above last year’s record.

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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