Sebi May Tighten Scrutiny of IPO and QIP Proceeds

The Securities and Exchange Board of India (SEBI) is considering tightening oversight norms for utilisation of funds raised through public and institutional issuances. At the same time, Gold ETFs have, for the first time, recorded higher net inflows than active equity mutual funds.

Part I: Sebi Proposes Stricter Monitoring of IPO, QIP and Rights Issue Proceeds

Proposed Changes

1. Lowering the Threshold
   • SEBI is examining reducing the threshold from ₹100 crore to ₹50 crore, or removing it entirely.
   • This would expand oversight to smaller issuers.
2. Direct Filing by Monitoring Agencies
   • Proposal to allow agencies to file monitoring reports directly with stock exchanges.
   • Aims to prevent delays and issuer interference.
3. Stronger Disclosure Norms
   • Currently, monitoring reports must be filed within 45 days of each quarter-end.
   • Delays and non-disclosures have limited investor transparency.
4. Tougher Penalties
   • Consideration of stricter action against companies that:
     • Fail to share information with monitoring agencies
     • Delay submissions
     • Withhold payments to agencies

Part II: Gold ETFs Surpass Equity Funds in Inflows

For the first time, Gold Exchange-Traded Funds (ETFs) attracted higher net inflows than active equity mutual funds.

• Gold ETFs (January 2026): ₹24,040 crore
• December 2025: ₹11,647 crore
• More than doubled month-on-month.