The government today said market regulator Sebi does not monitor usage of proceeds of any initial public offers (IPOs) and it is not contemplating any change in the current regulatory framework.
"Monitor of usage of issue proceeds is not under the purview of the Securities and Exchange Board of India (Sebi). The Sebi has, however, mandated disclosure about usage of issue proceeds vis-a-vis objectives every quarter," Minister of State for Finance Namo Narain Meena said in a written reply to the Rajya Sabha.
He further said the Sebi regulations do not prohibit usage of IPO proceeds for repayment of previous liabilities.
"The Sebi is not contemplating any change in the current regulatory framework regarding usage of issue proceeds," Meena said.
He said out of the total of 15 IPOs so far this fiscal, repayment of loans was disclosed as one of the objects in the offer documents of two IPOs.
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