Sebi proposes stricter IPO norms as startups listings gather pace

The proposals come amid a record Rs 1-trillion-plus mop-up through IPOs this year, the bulk of which came from new-age and loss-making companies

The Securities and Exchange Board of India (Sebi) has proposed to tweak rules governing initial public offerings (IPOs) to bring in more transparency and accountability.

The market regulator has sought a cap on the amount companies, mainly start-ups, can raise for inorganic growth initiatives and also on the quantum existing shareholders can offload in the IPO. Further, Sebi has proposed to increase the lock-in period for anchor investors from 30 days to 90 days. It has also called for the monitoring of IPO proceeds.

The proposals come amid a record Rs 1-trillion-plus mop-up through IPOs this year, the bulk of