SEBI Reviews Issue-Proceeds Disclosure Framework to Improve Transparency, Ease Compliance

The Securities and Exchange Board of India (SEBI) is reviewing the framework governing the monitoring and disclosure of the utilisation of funds raised through public issues with an aim to improve the timeliness of disclosures and simplify compliance requirements, Chairman Tuhin Kanta Pandey said on Saturday. Speaking at the Institute of Directors' Annual Directors' Conclave 2026 here, Pandey said meaningful corporate governance depends not only on disclosures but also on the relevance and quality of information made available to investors. He said SEBI is examining the existing framework for tracking and reporting the utilisation of issue proceeds to ensure disclosures are made in a more timely manner while reducing compliance complexities for companies.

According to Pandey, transparency should be judged by the usefulness of information rather than the volume of disclosures. “True transparency is not the volume of information. It is the quality, timeliness and usefulness of information,” he said, adding that disclosure requirements must help investors make informed decisions rather than simply increase reporting obligations. The SEBI chief noted that the regulator has progressively strengthened norms governing disclosure of material events and information through the introduction of materiality thresholds and defined timelines.

He said these measures were aimed at improving consistency and ensuring that important information reaches investors without delay. Pandey also said SEBI plans to further refine the framework governing related-party transactions. The proposed changes seek to make compliance requirements clearer and more practical for issuers while continuing to protect investor interests, according to him. On the broader regulatory framework, Pandey stressed the need for regulations to remain proportionate and avoid duplication of compliance requirements. In this regard, SEBI is considering a framework to prevent entities listed on multiple stock exchanges from being penalised more than once for the same violation. "The objective is to make regulation more efficient while preserving its purpose," Pandey said.

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