Sebi reviews framework for monitoring issue proceeds

Sebi Chairman Tuhin Kanta Pandey said the market regulator is reviewing the framework for monitoring and disclosing utilisation of issue proceeds. Sebi also plans to clarify related-party transaction rules and avoid duplication of fines imposed by multiple exchanges

New Delhi: Market regulator Sebi is reviewing the framework for monitoring and disclosing utilisation of issue proceeds to improve timely disclosures and streamline the compliance process, Sebi Chairman Tuhin Kanta Pandey said on Saturday.

Addressing the Institute of Directors’ Annual Directors’ Conclave 2026, Pandey said transparency is not merely about the volume of information disclosed by a company but about whether the information helps investors understand what matters.

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“We are reviewing the framework for monitoring and disclosure of utilisation of issue proceeds, with the objective of improving timely disclosures and streamlining the compliance process,” Pandey said.

He 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 Sebi chairman said.

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.

He also said Sebi proposes to further clarify 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.

On regulatory compliance, Pandey said good governance also requires regulation to remain proportionate and avoid unnecessary duplication.

Sebi is proposing a framework to avoid duplication of fines levied by multiple exchanges on entities listed on more than one exchange for the same matter, he added.

“The objective is to make regulation more efficient while preserving its purpose,” Pandey said.