SEBI has proposed easing the pre-IPO lock-in requirements.
13-November 2025
India’s markets regulator on Thursday proposed easing lock-in rules for existing shareholders in public issues, while excluding promoters and other large shareholders capable of influencing company decisions.
The current pre-IPO lock-in process is “cumbersome,” SEBI Chairperson Tuhin Kanta Pandey told Reuters on Wednesday. According to SEBI’s consultation paper, a six-month lock-in cannot be implemented if existing shareholders have pledged their shares.
The new framework proposes automatic enforcement of lock-in requirements, regardless of whether share pledges are invoked or released — a step aimed at reducing delays in the listing process.
The proposal comes at a time when India’s IPO market is booming. More than 300 companies have raised $16.55 billion so far in 2025, LSEG data shows.
SEBI has also recommended that companies include a concise summary of key disclosures in their public offer documents to help investors better understand the offering. Such summaries would ensure that essential information is clearly visible to investors, Pandey said.
Even as the year heads toward a surge of IPO listings, some investors and analysts have voiced concerns about inflated valuations. Pandey noted that SEBI does not intervene in valuation matters, adding, “We are more concerned about robust disclosures.”
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