SEBI begins LODR reforms; clarity on NSE IPO NoC will come at the right time, says Pandey

SEBI chairman Tuhin Kanta Pandey said the regulator has started reviewing the listing obligations and disclosure requirements, stressing that the process will include extensive consultations and a formal consultation document before taking final decisions. | Photo credit: FRANCIS MASCARENHAS

Addressing the media on the sidelines of the CII Financing National Summit in Mumbai, Pandey said, “That is a big regulation and the process has started. We will do a lot of consultations and come out with a consultation paper. It will take some time… You will know when the NoC (for NSE IPO) will be issued.”

IPO target debate

During the interaction, Pandey was also asked about the comments of Chief Economic Advisor V. Anantha Nageswaran, who said that IPOs these days are becoming less about fundraising and more about providing exits to existing investors. Responding to this, the SEBI chief said the regulator has already introduced certain changes to strengthen the framework.

He explained that SEBI has revised some of the metrics used in the regulations. “The metrics have also been revised – earlier open interest was used, but now we have introduced the delta metric. With delta, the assessment becomes more accurate. They also talked about premium versus open interest,” he said.

Multiple IPO roles

Pandey added that IPOs obviously serve different purposes depending on the company and its stage of growth. “An IPO allows for both exit and fundraising. It depends on the specific IPO. Many companies are already well established by the time they enter the market. As they mature, it is natural that some investors will choose to exit because a premium has already been created,” he noted.

At the same time, he said, there are companies launching initial public offerings to raise new capital for greenfield projects and business expansion. “This is a different kind of IPO,” he added.

Highlighting SEBI’s broader approach, Pandey said, “From our perspective, every variety of IPOs should exist in the capital market, and all kinds of avenues should remain open in the capital market.”

Published on November 17, 2025