{
  "id": 9357949,
  "title": "SEBI plans to review merchant banking and IPO rules",
  "url": "https://urgent.news/2026/09/23/sebi-plans-to-review-merchant-banking-and-ipo-rules",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-23T15:04:33.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/sebi-plans-to-review-merchant-banking-and-ipo-rules/article71500322.ece"
  },
  "original_language": "en",
  "account": "The Securities and Exchange Board of India (SEBI) intends to reassess its merchant banking regulations and IPO guidelines. The primary objectives include simplifying compliance processes and reducing the expenses associated with raising capital through initial public offerings (IPOs), according to Jeevan Sonparote, an Executive Director of SEBI. Sonparote announced that SEBI has allocated six months to conduct this review and subsequently release a consultation paper. The review will scrutinize the relevance of current regulations to the actual work performed by merchant bankers and assess provisions related to valuations. Additionally, SEBI plans to review the Issue of Capital and Disclosure Requirements (ICDR) regulations, with a working group to be established soon. The review aims to eliminate or streamline provisions, increase clarity on merchant bankers' responsibilities, and reduce the cost of public issues. SEBI is also evaluating the current advertising process for IPOs, including newspaper advertisements, to determine if the existing procedure is still necessary given the high volume of advertisements involved. The regulator intends to examine the effectiveness of the existing advertising process and decide on its continued relevance. SEBI plans to hold more regular discussions with merchant bankers, particularly those handling SME issues, on compliance and offer documents. These interactions could occur quarterly or biannually. SEBI also aims to enhance the repository of IPO-related documents for reference during compliance, rather than merely using them as checklists. SEBI and industry bodies are expected to collaborate over the next three to six months on these measures. The Securities Appellate Tribunal presiding officer, Justice PS Dinesh Kumar, emphasized the importance of maintaining professional distance between merchant bankers and their clients during due diligence. He stressed that merchant bankers should independently examine a company's financials, documents, and fundamentals, and assess its projections before advising clients. Comments on SEBI's actions must be in English, written in full sentences, and adhere to community guidelines.",
  "summary": "Regulator to examine price bands, advertising costs and valuation requirements to simplify public issues",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}