Securities and Exchange Board of India (SEBI) Chairperson Tuhin Kanta Pandey announced on Monday that the process for revising the Listing Obligations and Disclosure Requirements (LODR) regulations is underway and will involve extensive consultations before any final decisions are made. He also mentioned that clarity regarding the No Objection Certificate (NoC) for the National Stock Exchange (NSE) initial public offering (IPO) would be provided at an appropriate time.
Speaking to the media during the CII Financing National Summit in Mumbai, Pandey stated, “That is a big regulation, and the process has begun. We will have lots of consultations and put out a consultation paper. It will take some time… You will know when the NoC (for NSE IPO) is issued.”
Pandey was also questioned about remarks from Chief Economic Adviser V Anantha Nageswaran, who suggested that current IPO trends are shifting towards facilitating exits for existing investors rather than solely focusing on fundraising. In response, the SEBI Chairperson indicated that the regulator has already implemented several changes to enhance the existing framework.
He elaborated on the revisions made to certain metrics utilized in the regulations. “The metrics have also been revised—earlier, open interest was used, but now we have introduced the delta metric. With delta, the assessment becomes more accurate. They were also discussing premium versus open interest,” he explained.
Pandey emphasized that IPOs serve various functions depending on the company and its growth stage. “An IPO allows both exit and fundraising. It depends on the specific IPO. Many companies are already well-established by the time they come to the market. When they mature, it is natural that some investors will choose to exit because a premium has already been created,” he remarked.
At the same time, he noted that some companies launch IPOs to secure fresh capital for new projects and business expansion, calling these a “different kind of IPO.” He stressed SEBI’s comprehensive approach, stating, “From our perspective, every variety of IPO should exist in the capital market, and all kinds of possibilities should remain open in the capital market.”
Published on November 17, 2025.
