SEBI plans to review merchant banking and IPO rules
BusinessLine 2 hrs ago·23 Sept 2026, 3:04 pm
The Securities and Exchange Board of India (SEBI) has announced a review of the rules governing merchant bankers and initial public offerings. The regulator said it will look at the way price bands are set, the costs companies incur for advertising, and the valuation criteria used to price new issues, with the goal of making public offerings simpler and less expensive.
For investors, any change to these parameters could affect the timing, pricing and overall attractiveness of upcoming IPOs. Lower issuance costs and clearer valuation guidelines may encourage more companies to go public, while adjustments to price‑band rules could influence the level of discount or premium that retail buyers see at the listing.
The next steps include a consultation period where market participants can submit feedback, followed by the release of detailed proposals. Keep an eye on SEBI’s timeline, the specific amendments it proposes, and how the pipeline of new listings responds to any regulatory shifts.
Excerpt from BusinessLine
The Securities and Exchange Board of India (SEBI) will review its merchant banking regulations and the rules governing public issues, with a focus on simplifying compliance and bringing down the cost of raising money through IPOs, a senior official said on Wednesday. “Six months is what we have given ourselves to see…Read the original at BusinessLine
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
Why it matters
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