Sebi sets up new expert group of 22 members on listing obligations

The Mohanty committee had submitted a 200-page report proposing changes to related party transactions, promoter reclassification, director appointments, IPO eligibility, and disclosure timelines. These proposals aim to bridge gaps and address overlaps in Sebi’s Listing Obligations and Disclosure Requirements and Issue of Capital and Disclosure Requirements regulations.

These two regulations are key to upholding corporate governance and preventing information asymmetry.

Sources said Sebi is likely to take up the recommendations submitted by the Mohanty committee at its next board meeting scheduled for the last week of September. The expert group proposed a longer promoter lock-in period if funds raised via an IPO were used to repay loans utilised for capital expenditure. It also suggested increasing the timeline for disclosure of litigation or disputes from the existing 24 hours to 72 hours. The regulator has also sought more disclosure of pre-IPO transactions.