Sebi proposes review of framework for monitoring utilization of issue proceeds

The Securities and Exchange Board of India (Sebi) has invited public comments on recommendations to review the framework for monitoring and disclosure of utilisation of issue proceeds by listed companies.

The regulator sought comments on the recommendations of a working group constituted to review the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations). Stakeholders can submit their comments and suggestions, along with the rationale, by November 3, 2026, in its latest circular.

The working group, chaired by V S Sundaresan, former executive director at Sebi, was constituted to review the LODR Regulations with the aim of streamlining the rules and simplifying their structure and language.


The paper said the group was constituted "to streamline the regulations, simplify the structure and language, remove ambiguities and redundancy, etc."

The working group has submitted its first report, which comprises three chapters. The first deals with monitoring and disclosure of utilisation of issue proceeds, the second covers penal provisions and actions by stock exchanges for non-compliance by listed companies, and the third addresses clarifications on related-party transaction provisions.

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The LODR Regulations were published in the Gazette of India on September 2, 2015. The objective was "to consolidate, streamline, and harmonize the various existing listing agreements into a single, unified framework and strengthen corporate governance, transparency, and protection of the interests of investors."

The regulator noted that the regulations have been amended periodically since 2015, which "may have led to various interpretation issues arising out of multiple amendments."

The consultation paper also identifies provisions under the Sebi (Issue of Capital and Disclosure Requirements) Regulations dealing with monitoring agencies for initial public offerings on the main board, rights issues, further public offers, preferential issues, qualified institutional placements and initial public offerings by small and medium enterprises.

Sebi has invited public comments on the recommendations by November 3, 2026. Responses can be submitted through the regulator's online public comments portal. In case of technical issues, stakeholders can email their comments to consultationcfd@sebi.gov.in, with the subject line specified in the consultation paper.

Sebi invites comments on review of issue proceeds monitoring framework

The Securities and Exchange Board of India (Sebi) has invited public comments on recommendations to review the framework for monitoring and disclosure of utilisation of issue proceeds by listed companies.

In a consultation paper dated October 13, the regulator sought comments on the recommendations of a working group constituted to review the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations). Stakeholders can submit their comments and suggestions, along with the rationale, by November 3, 2026.

The working group, chaired by V S Sundaresan, former executive director at Sebi, was constituted to review the LODR Regulations with the aim of streamlining the rules and simplifying their structure and language.

The paper said the group was constituted "to streamline the regulations, simplify the structure and language, remove ambiguities and redundancy, etc."

The working group has submitted its first report, which comprises three chapters. The first deals with monitoring and disclosure of utilisation of issue proceeds, the second covers penal provisions and actions by stock exchanges for non-compliance by listed companies, and the third addresses clarifications on related-party transaction provisions.

According to the paper, Chapter II deals with "review of penal provisions and actions by stock exchanges (SEs) for non-compliance with SEBI regulations by listed companies including standard operating procedure (SOP) for action by stock exchange." Chapter III covers "clarifications on Related Party Transaction (RPT) Provisions under the LODR Regulations."

The LODR Regulations were published in the Gazette of India on September 2, 2015. The objective was "to consolidate, streamline, and harmonize the various existing listing agreements into a single, unified framework and strengthen corporate governance, transparency, and protection of the interests of investors."

The regulator noted that the regulations have been amended periodically since 2015, which "may have led to various interpretation issues arising out of multiple amendments."

The consultation paper also identifies provisions under the Sebi (Issue of Capital and Disclosure Requirements) Regulations dealing with monitoring agencies for initial public offerings on the main board, rights issues, further public offers, preferential issues, qualified institutional placements and initial public offerings by small and medium enterprises.

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here