From mint · Apoorva Ajith · · 1m
Sebi Proposes Stricter IPO Funds Tracking
Sebi introduces fines and direct reporting for IPO fund monitoring.
In brief
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 with IPO fund tracking. Originally reported by mint.
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.
The essence
Sebi proposes ₹50,000 fines and frozen demat accounts for companies that don't cooperate with IPO fund tracking.
