The regulator stated that non-banking monetary corporations lending in opposition to unlisted shares have expressed settlement with this proposed mechanism
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The Securities and Alternate Board of India (SEBI) has proposed amendments to its Subject of Capital and Disclosure Necessities (ICDR) Rules, 2018, together with a brand new framework to resolve lock-in points for pledged pre-IPO shares and the substitute of the abridged prospectus with a concise, retail-friendly supply doc abstract.
At the moment, pre-issue capital held by individuals apart from promoters is required to be locked in for six months post-listing. Nonetheless, depositories are unable to create lock-in for shares which were pledged, resulting in compliance difficulties on the time of the IPO — notably in corporations with a big or untraceable shareholder base.
To deal with this, SEBI has proposed permitting depositories to file such pledged shares as “non-transferable” for the relevant lock-in interval, based mostly on directions from the issuer. Issuers can even must amend their Articles of Affiliation to make sure that, within the occasion of pledge invocation or launch, the shares mechanically stay beneath lock-in within the account of both the pledgee or pledger.
The regulator stated that non-banking monetary corporations lending in opposition to unlisted shares have expressed settlement with this proposed mechanism, which is predicted to simplify IPO execution whereas defending lenders’ pursuits.
Simplified disclosures
SEBI has additionally proposed casting off the requirement for an abridged prospectus to accompany each IPO software. As an alternative, issuers will present a standardised “supply doc abstract” — a concise and easy-to-understand model of the supply doc, containing key enterprise, monetary and threat disclosures.
“The voluminous nature of the supply doc might deter retail traders from reviewing such paperwork, thereby resulting in a scarcity of engagement and participation within the IPO course of, together with offering feedback on the disclosures,” SEBI stated in a draft paper, inviting public feedback by December 4.
This abstract can be submitted together with the draft supply doc and made out there on the web sites of SEBI, inventory exchanges, the issuer, and lead managers. The regulator stated the transfer is meant to make disclosures extra accessible to retail traders, lots of whom at the moment depend on casual or unverified sources comparable to social media or grey-market discussions
Revealed on November 13, 2025
