The Securities and Exchange Board of India (SEBI) is set to introduce a series of reforms targeting the primary market and debt securities, with the objective of simplifying disclosures, facilitating fundraising, and increasing investor participation.
At the SBI Banking & Economics Conclave 2025, SEBI Chairman Tuhin Kanta Pandey announced plans to streamline the offer document summary, making it available separately for investor feedback. He emphasized that the procedure for companies planning initial public offerings (IPOs) with pledged pre-IPO shares is being refined. The new framework will automatically enforce lock-in requirements, regardless of whether the pledge is invoked or released, thereby mitigating potential listing delays. Consultation papers on these initiatives will be released shortly.
In an effort to enhance retail engagement in the corporate bond market, SEBI is preparing to launch a nationwide investor education campaign in collaboration with market stakeholders. Additionally, proposals are under consideration to enable issuers to provide incentives to specific investor categories, encouraging retail purchases of debt instruments.
Regarding bond derivatives, Pandey disclosed that SEBI is in discussions with the Reserve Bank of India (RBI) to explore the introduction of such instruments to boost market liquidity and offer new risk management tools.
On the commodities sector, SEBI and RBI are working together on a regulatory framework to allow prudent institutional participation, particularly from banks, insurance companies, and pension funds. A proposal is also being evaluated to permit foreign portfolio investors (FPIs) to trade non-cash settled, non-agricultural commodity derivatives.
Pandey underscored that India’s growth and self-reliance depend on strengthening equity, debt, and alternative investment markets to complement the banking system. He reaffirmed SEBI’s commitment to being a responsive and forward-looking regulator, dedicated to building a robust and inclusive market ecosystem.
This initiative arrives as domestic investor involvement reaches record levels, with more than 13.5 crore unique investors in the capital market, and mutual fund participants surpassing 5.6 crore. SEBI’s proposed reforms aim to further democratize access to capital markets while enhancing efficiency and transparency across various instruments.
In its ongoing efforts, the regulator has implemented several measures to improve market accessibility and bolster confidence. Notable changes include reducing IPO listing timelines to T+3 and rights issue timelines to 23 days. Additionally, the face value of corporate bonds has been decreased to ₹10,000 to attract retail investors, and online bond platforms have been launched to facilitate secondary trading.
Published on November 6, 2025.
