SEBI reviewing framework on utilisation of issue proceeds

The Securities and Exchange Board of India (SEBI) is reviewing the framework for monitoring and disclosing utilisation of issue proceeds to improve timely disclosures and streamline the compliance process, Chairman Tuhin Kanta Pandey said on Saturday.

Speaking at the Institute of Directors’ Annual Directors’ Conclave 2026 in New Delhi, Pandey said a company making a disclosure does not necessarily mean it has become transparent. “True transparency is not the volume of information. It is the quality, timeliness and usefulness of information.”

The regulator also seeks to ensure that transactions involving potential conflicts are subject to appropriate scrutiny through the framework governing related-party transactions.

“We propose to further clarify the framework on related-party transactions, so that the requirements are clear and workable for issuers while retaining the necessary safeguards for investors,” Pandey said.

The regulator is also looking at ways to reduce avoidable compliance burdens. “For entities listed on multiple exchanges, for example, we are proposing a framework to avoid duplication of fines levied by multiple exchanges for the same matter,” he said.

“Good governance also requires that regulation remains proportionate and does not create unnecessary duplication. The objective is to make regulation more efficient while preserving its purpose.”

Pandey said the regulator has progressively strengthened the framework for disclosure of material events and information, with materiality thresholds and specified timelines aimed at bringing greater consistency and timeliness to disclosures.

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.