SEBI bans transfer of pre-IPO pledged shares during lock-in
Business
SEBI just rolled out a new rule for IPOs: any shares pledged before an IPO will be tagged as nontransferable during their lock-in period.
This move is meant to stop promoters and early investors from getting around the usual restrictions by pledging their shares.
Depositories automate IPO pledged shares tagging
Depositories have upgraded their systems so these rules kick in automatically, even after a pledge ends.
Companies going public now need to update their official documents and let everyone involved know about the changes.
SEBI made this call after hearing that pledged shares by non-promoters were creating compliance challenges around the six-month lock-in when pledging shares before an IPO.
The goal? Make things more transparent and fair for all investors.