The Securities and Exchange Board of India (SEBI), on October 13, 2026, has invited public comments on proposed changes to the framework for monitoring and disclosure of utilisation of issue proceeds under the LODR Regulations.
The following has been stated:
The proposals include allowing monitoring agencies to directly submit reports to stock exchanges within prescribed timelines. In cases of non-cooperation by listed entities, reports may be based on the best available information and accompanied by a Statement of Non-Cooperation. If the entity subsequently rectifies the issue, a complete report is to be submitted within 15 days.
Stock exchanges are proposed to levy a ₹50,000 fine per instance of non-cooperation. Continued non-compliance may ultimately result in the freezing of promoters' demat accounts under the applicable SOP framework.
SEBI also proposes mandatory appointment of monitoring agencies for all issuances, except the offer-for-sale component, along with harmonisation of the ICDR and LODR provisions and insertion of a separate Regulation 32A dealing with monitoring agency reports.
Public comments, along with reasons, may be submitted to SEBI by November 3, 2026.
Please refer to the document attached below for more details.
