SEBI has issued a consultation paper proposing amendments to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, aimed at improving ease of doing business and enhancing retail investor participation in public issues. The first proposal seeks to simplify compliance with lock-in requirements for pre-IPO shares, especially those under pledge, by introducing an enabling framework that allows depositories to treat pledged shares as “non-transferable” during the lock-in period. The second proposal reviews the need for the abridged prospectus, suggesting its replacement with a concise “Offer Document Summary” to improve investor understanding and accessibility of key disclosures. This summary would be hosted online by issuers, SEBI, exchanges, and lead managers. The proposed changes intend to streamline IPO processes, increase retail engagement, and ensure that investors rely on accurate, summarized information rather than unverified sources. Public comments on these proposals are invited until December 4, 2025.

 

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