India’s markets regulator is revamping how companies disclose the use of funds from public issues, aiming to improve reporting speed and clarity, according to SEBI chairman Tuhin Kanta Pandey, in a move to boost transparency and market efficiency.
India’s markets regulator is reworking how companies disclose and track the use of money raised in public issues, in a move aimed at improving the speed and usefulness of reporting, according to SEBI chairman Tuhin Kanta Pandey. Speaking at the Institute of Directors’ Annual Directors’ Conclave 2026, Pandey said the aim is to make compliance less cumbersome while giving investors clearer information about where funds are going and whether they are being deployed as promised.
Pandey argued that disclosure alone is not enough if it does not help investors assess what matters. He said SEBI has already tightened rules on material events and disclosures, with clearer thresholds and deadlines to improve consistency. The regulator is now also looking to clarify rules on related-party transactions, which have long been a focus of investor concern because of the risk that dealings between affiliated entities can obscure true financial performance or shift value away from minority shareholders.
The SEBI chief also said the regulator wants compliance rules to be proportionate and to avoid repeated penalties for the same violation when a company is listed on more than one exchange. That push fits with a broader effort to make regulation more efficient without weakening investor protection. Earlier this year, Pandey has also called for sharper IPO disclosure standards, particularly on risk factors, valuations, issue objectives and the use of proceeds, after warning that weak disclosure can slow fund-raising and lead to repeated regulatory questions.
Pandey’s comments come as SEBI is pursuing a wider review of market rules, including short-selling norms, derivatives and governance standards. According to other recent remarks reported by Business Standard and The Economic Times, the regulator has been weighing steps to strengthen market liquidity while curbing pockets of excessive speculation, and has also flagged misuse of the small and medium-sized enterprise platform, where it has seen cases involving fund diversion and unfair trading conduct. In that context, the latest review of issue-proceeds disclosure appears to be part of a broader effort to tighten oversight while keeping India’s capital markets workable for issuers and investors alike.
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