# Sebi Proposes Stricter IPO Funds Tracking

> Sebi introduces fines and direct reporting for IPO fund monitoring.
- Title: Sebi Proposes Stricter IPO Funds Tracking · mint | Shortify
- Summary: Sebi introduces fines and direct reporting for IPO fund monitoring. Sebi proposes ₹50,000 fines and frozen demat accounts for companies that don't cooperate…
- Keywords: sebi, ipo, funds, monitoring, fines, demat, stock exchanges, news, india, Proposes, Stricter, Tracking
- Source: mint — https://livemint.com/news/sebi-proposes-overhaul-of-rules-on-monitoring-use-of-issue-proceeds-11791907957725.html
- Author: Apoorva Ajith
- Published: 2026-10-13T16:53:05+00:00
- Read time: 1 min
- Topics: sebi, ipo, funds, monitoring, fines, demat, stock exchanges, news, india
## Sebi Proposes Stricter IPO Funds Tracking
The Securities and Exchange Board of India (Sebi) has proposed a review of the regulatory framework for monitoring the utilization of funds raised by listed companies.
## Direct Reporting to Exchanges
Monitoring agencies will report directly to stock exchanges within prescribed timelines, with penalties for non-cooperation.
## Fines for Non-Cooperation
Companies failing to cooperate face a ₹ 50,000 fine and frozen demat accounts after 30 days of non-compliance.
## Public Comments Deadline
Public comments on the proposals are due by 3 November 2026, as part of Sebi's consultation paper.
## Rectification Timeline
If a company provides complete information, the monitoring agency must submit a revised report within 15 days.
## Termination Restrictions
Companies cannot terminate monitoring agreements until issue proceeds are rectified and reports are complete.
## Key takeaway

Sebi proposes ₹50,000 fines and frozen demat accounts for companies that don't cooperate with IPO fund tracking.