SEBI proposes easing lock-in rules for shareholders amid booming IPO market: Report

India's markets regulator on Thursday proposed easing lock-in requirements for existing shareholders in public issues, excluding large shareholders or promoters who have the ability to influence company decisions.

The current pre-IPO lock-in process is "cumbersome", Tuhin Kanta Pandey, chairman of Securities and Exchange Board of India (SEBI), told Reuters on Wednesday.

If there are some shares pledged by existing shareholders, a lock-in of six months cannot be enforced, SEBI said in a paper issued on its website.

The proposed framework calls for the automatic enforcement of lock-in requirements even if pledges are invoked or released, a move that could address delays in the current listing process.

SEBI's proposal comes amid a booming IPO market in India, where more than 300 companies have raised $16.55 billion so far in 2025, according to LSEG data.

SEBI also proposed that issuing companies should upload a summary of key disclosures as part of public offer papers to help improve investors' understanding.

A summary of the offer document will lead to key disclosures and details popping up before investors, Pandey said.

As the IPO market looks set to end the year with a blitz of listings, some investors and analysts have raised concerns on inflated valuations.

Pandey said SEBI does not get involved in valuations. "We are more concerned about robust disclosures."

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