SEBI proposes changes to pre-IPO lock-in rules for smoother listings
SEBI is looking to make IPO listings smoother by tweaking the pre-IPO lock-in rules for existing shareholders.
Right now, shares that are pledged can delay the listing process, but SEBI's new plan aims to cut out these holdups and help companies go public faster.
Proposed changes to the existing process
SEBI has proposed that lock-in periods should start automatically—even if shares are pledged—so there's no more waiting around for releases.
If a pledge gets invoked, those shares just stay locked in the new owner's account for whatever time is left.
This move is all about making things simpler and less stressful for everyone involved.
SEBI also wants to improve investor education during IPOs
SEBI wants clearer summaries of key IPO info to help investors make smarter choices.
Why now? The push for smoother listings
These updates come after industry feedback calling the old process "cumbersome."
With over 300 companies raising $16.5 billion through IPOs this year alone, SEBI hopes these tweaks will keep India's booming market running smoothly—while still protecting investors' interests.