Sebi revamps framework for tracking use of IPO proceeds

The Securities and Exchange Board of India (Sebi) is undertaking a comprehensive review of its framework governing the monitoring and disclosure of funds utilised by companies after public share offerings, Sebi Chairman Tuhin Kanta Pandey announced on Saturday.

Addressing the Institute of Directors' Annual Directors' Conclave 2026, Pandey emphasised that the regulatory overhaul seeks to improve the timeliness of disclosures while simplifying compliance requirements for listed entities. The move reflects a broader regulatory push to strengthen investor confidence in capital market transparency.

Pandey underscored that genuine transparency extends beyond the sheer volume of information companies disclose to shareholders and regulators. "True transparency is not the volume of information. It is the quality, timeliness and usefulness of information," he stated, highlighting a critical distinction between disclosure quantity and substantive communication.

The Sebi chief cautioned that companies making disclosures do not automatically achieve transparency standards. Rather, he said, the regulator's focus remains on ensuring disclosed information meaningfully helps investors comprehend matters material to their investment decisions.

This regulatory refinement comes as Sebi continues strengthening disclosure frameworks across multiple market segments, reflecting its commitment to progressive enhancement of investor protections and market integrity.