Sebi proposes stricter IPO funds tracking, fines for non-cooperation

What happened: Sebi issued a consultation paper proposing changes to how IPO and issue proceeds are monitored, including direct reporting by monitoring agencies to stock exchanges and penalties for issuer non-cooperation. Key numbers: Fine of ₹50,000 per instance of non-cooperation. Why it matters: The proposals would tighten oversight of how listed companies use raised capital, let exchanges publish monitoring reports and non-cooperation statements, and allow promoter demat accounts to be frozen for unresolved non-compliance.

Sebi issued a consultation paper proposing changes to how IPO and issue proceeds are monitored, including direct reporting by monitoring agencies to stock exchanges and penalties for issuer non-cooperation.

The proposals would tighten oversight of how listed companies use raised capital, let exchanges publish monitoring reports and non-cooperation statements, and allow promoter demat accounts to be frozen for unresolved non-compliance.