Sebi proposes relaxations in pre-IPO lock-in rules

India’s market regulator on Thursday proposed relaxing lock-in requirements for existing shareholders in public matters, excluding large shareholders or promoters who have the ability to influence corporate decisions.The current pre-IPO lock-in process is “cumbersome,” Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India, told Reuters on Wednesday.

If shares have been pledged by existing shareholders, a six-month lock-in cannot be enforced, SEBI said in a document on its website.

The proposed framework calls for the automatic enforcement of lock-in requirements even if commitments are invoked or released, a step that could address delays in the current listing process.

SEBI’s proposal comes amid a booming IPO market in India, where more than 300 companies have raised $16.55 billion so far in 2025, according to LSEG data.

SEBI also suggested that issuing companies should upload a summary of key disclosures as part of public offer documents to help improve investor understanding. A summary of the offer document will lead to key disclosures and details surfacing for investors, Pandey said. As the IPO market looks to end the year with a flurry of listings, some investors and analysts have raised concerns about inflated valuations.

Pandey said SEBI does not get involved in valuations. “We are more concerned about robust disclosures.”