India’s markets regulator SEBI proposes new rules for public issues that would strengthen oversight of how IPO-raised funds are used. Under a consultation paper, SEBI suggests imposing a fine of ₹50,000 for each instance in which a listed company does not cooperate with the monitoring agencies tasked with tracking fund utilisation.
The proposals also expand monitoring by enabling monitoring agencies to submit their reports directly to stock exchanges if companies miss information or document timelines. Across the reports, SEBI’s enforcement approach is described as graded, with escalation that could eventually include freezing promoters’ demat accounts for repeated or non-compliant behaviour. Outlets differ mainly in emphasis: one highlights the proposed empowerment of monitoring agencies to report directly to exchanges, while others focus on the fine and the potential impact on promoters through demat account freezes. The measures are presented as part of SEBI’s stricter framework for tracking funds raised through public issues.
