New Delhi/Kolkata: The Securities and Exchange Board of India (SEBI) has announced key reforms aimed at boosting market integrity, facilitating large IPOs, and protecting investors from fraudulent practices.
Relaxed Norms for Large IPOs
SEBI Whole-time Director Kamlesh Chandra Varshney stated that the regulator has issued a consultation paper proposing an extension of the deadline for achieving 25 percent public shareholding. Exceptionally large companies may now get 10 years to meet this requirement, instead of the current five years.
The move is expected to make large IPOs, including a potential listing of the National Stock Exchange, more feasible. SEBI has also advised merchant bankers and anchor investors to adopt “realistic and conservative valuations” to safeguard retail investors from post-listing price erosion.
Action Against Unregistered Advisors
SEBI is intensifying its crackdown on unregistered investment advisors and financial influencers who mislead retail investors through social media. Varshney revealed that SEBI has partnered with Meta to implement an advertisement verification system, ensuring only registered entities can promote market-related content. Efforts are underway to expand this framework to other digital platforms.
A dedicated SEBI monitoring team now flags illegal posts to Google and Meta, which take them down within hours. Enforcement actions are being initiated against violators, including penny stock manipulators and TV experts offering unauthorized trading advice.
Strengthening Investor Education
Varshney emphasized that SEBI supports genuine financial educators but will act against those misusing that guise for manipulation. To strengthen investor awareness, SEBI is launching outreach campaigns in schools and universities, aimed at equipping investors with tools to distinguish genuine advisors from fraudsters.
About SEBI
The Securities and Exchange Board of India (SEBI), established in 1988 and given statutory powers in 1992, regulates India’s securities and commodity markets. Headquartered in Mumbai, SEBI works to protect investors’ interests, promote market transparency, and ensure orderly market development through regulations and enforcement.
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