SEBI proposes mandatory monitoring agency for all public issues, ₹50,000 fine for non-cooperation
BusinessLine 1 hr ago·13 Oct 2026, 4:37 pm
The Securities and Exchange Board of India (SEBI) has proposed a significant overhaul of its regulations for public issues. The regulator plans to mandate a dedicated monitoring agency for all new share sales, a role previously held by the issuing company. This new entity will be responsible for overseeing the entire process, from the initial filing to the final listing, ensuring stricter compliance and transparency.
This change is crucial for retail investors as it aims to reduce the risk of fraud and mismanagement in new offerings. By introducing graded enforcement measures, including a penalty of ₹50,000 for non-cooperation and the potential freezing of promoters' demat accounts, SEBI intends to ensure that companies adhere to disclosure norms. This shift is expected to make the IPO market more robust and trustworthy for small investors.
Investors should monitor the final implementation of these rules, as they will likely set a new standard for corporate governance in public issues. The move to allow direct reporting to stock exchanges could also speed up the resolution of compliance issues. As the regulations are finalized, market participants will need to adapt to the new compliance landscape, which could lead to a more disciplined and efficient market environment.
Excerpt from BusinessLine
Markets regulator SEBI on Tuesday proposed making the appointment of a monitoring agency mandatory for all public issues, irrespective of their size, and imposing a fine of Rs 50,000 on listed companies for each instance of non-cooperation in monitoring the utilisation of issue proceeds. SEBI proposes mandatory…Read the original at BusinessLine
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