SEBI Plans to Simplify IPO Documents, Ease Rules for Pledged Shares

The Securities and Exchange Board of India plans to issue a consultation paper to rationalise the documentation process for companies going public, Chairman Tuhin Kanta Pandey said.

“For IPO-bound companies, the existing contents of the offer documents will be further rationalised,” Pandey said. The regulator is working on a separate summary document for investors highlighting key details of the offer in about 30–40 pages.

SEBI also aims to streamline the listing process for companies whose pre-IPO shares are pledged. “The proposed framework will ensure that lock-in requirements are automatically enforced even if the pledge is invoked or released,” Pandey said.

To deepen the commodity derivatives market, the regulator is considering allowing foreign portfolio investors to trade in non-cash-settled, non-agricultural derivative contracts. Pandey said he would request the Reserve Bank of India to permit banks to participate in commodity derivatives.

He added that India still lacks derivative products in several base metals and urged the industry and exchanges to develop more instruments. A working group has also been formed to strengthen agricultural commodity derivatives.