Overview
- Issuers would be allowed to treat pre-IPO shares pledged by non-promoters as locked in for the required period, removing a key operational hurdle at listing.
- After a pledge is invoked, shares would remain locked in the pledgee’s account for the balance period; if a pledge is released, the shares would stay locked in the pledger’s account for the remainder.
- SEBI plans enabling changes to ICDR rules, issuer Articles of Association updates, and depository system modifications so NSDL/CDSL can automatically mark such shares non-transferable or locked in.
- The regulator also proposes replacing the abridged prospectus with a concise, standardized offer document summary, hosted across issuer, SEBI, exchange and lead manager sites with QR-code access on application forms.
- SEBI chair Tuhin Kanta Pandey called the current process cumbersome and said the proposals aim to streamline IPO timelines while safeguarding lenders and improving retail disclosure.