Business · India Bureau
Sebi to overhaul merchant banking rules and IPO cost framework
India's securities regulator is set to review merchant banking norms and the cost structure for initial public offerings to streamline processes and reduce expenses for companies going public.
LSN India ·
The Securities and Exchange Board of India (Sebi) plans a comprehensive review of merchant banking regulations and the IPO cost framework in the coming months, signalling its intent to simplify listing procedures for domestic companies.
As part of the initiative, the regulator will examine the Integrated Disclosure and Governance Norms (ICDR), focusing on price band mechanisms and advertising requirements that currently govern public issues. The move aims to lower the financial burden on companies seeking to raise capital through the public markets.
The review reflects Sebi's broader objective to reduce procedural bottlenecks and make the IPO process more cost-efficient without compromising investor protection standards. Simplifying merchant banking rules is expected to streamline the role of intermediaries involved in public offerings.
The timing of the regulatory refresh comes as India's capital markets have witnessed significant IPO activity in recent years. Reducing compliance costs and administrative hurdles could potentially encourage more companies, particularly smaller and mid-sized enterprises, to consider public listings as a financing option.
Sebi's move is anticipated to enhance market accessibility while maintaining the regulatory safeguards essential for orderly functioning of securities markets and investor confidence.