The SEBI is reviewing the framework governing initial public offerings (IPOs), follow-on public offerings (FPOs), and small and medium enterprise (SME) listings, the regulator Tuhin Kanta Pandey said at NDTV Profit Ignite on Wednesday.
As reported by NDTV, Pandey said India ranked first globally by the number of IPOs in 2025, highlighting the depth of the country’s primary market. However, he indicated that more companies could raise capital by listing on stock exchanges.
Earlier this month, the market regulator extended its relief to initial public offering (IPO) issuers, allowing them to change their issue size without additional compliance until March 2027.
SEBI reviews IPO disclosures and monitoring of proceeds
Pandey stressed the need to make IPO disclosures easier for ordinary investors to understand. SEBI is also working on a system under which third-party monitoring agencies would report to stock exchanges on whether companies are using IPO proceeds for the purposes stated in their offer documents.
Pandey also suggested that industry associations and chambers of commerce could help identify promising businesses and prepare them for listing, potentially widening the pool of companies accessing the capital markets.
SME listing rules under review
SEBI is considering changes to the SME listing framework, including measures to reduce issuance costs, revise company classifications, and improve trading efficiency.
Pandey also flagged concerns about companies that remain listed despite having little economic activity, warning that such entities could pose risks to the market if they operate like shell companies.
“Such companies remaining in the listed space without much economic activity and sometimes, you know, acting just like shell companies, they pose risks to the market,” Pandey said at NDTV Profit Ignite.
SEBI wants to identify and remove such companies from the market.
IPO listings stay strong in 2026
So far in 2026, 294 companies across the mainboard and SME segments have successfully listed their shares on stock exchanges, adding to the size of the Indian stock market. This follows a record 376 listings in 2025.
Of all the IPOs that have listed in 2026, 160 stocks are trading in profit, while 134 are in the red so far, reflecting an overall average gain of 19.5%, Trendlyne data showed.
Proceeds from IPOs in India have reached almost $10 billion in July-September—the highest ever for the quarter—thanks to blockbuster offerings by National Stock Exchange of India Ltd. and SBI Funds Management Ltd.
Meanwhile, Coca-Cola Co is also considering filing a draft prospectus in December for an initial public offering (IPO) of its Indian bottling unit, people familiar with the matter told Bloomberg in September.
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