SEBI plans template-based IPO filings, regulatory clean-up in FY26

SEBI plans to allow a broader set of strategies under SIFs, which bridge the gap between mutual funds and portfolio management services
| Photo Credit:
HEMANSHI KAMANI

SEBI plans to overhaul key market regulations, including simplifying draft offer documents, easing compliance for foreign portfolio investors (FPIs) and expanding investment options under Specialised Investment Funds (SIFs) in this financial year.

The market regulator aims to introduce a template-based format for relevant sections of draft offer documents to cut down on repetitive disclosures and make filings easier to prepare and understand. The current framework under the Issue of Capital and Disclosure Requirements (ICDR) Regulations, introduced in 2018, has expanded over time, leading to bulky, complex documents.

For 2025-26, the regulator will also undertake a comprehensive clean-up of overlapping and redundant rules, simplify procedural requirements and use technology to reduce compliance costs. “Excessive or overlapping regulations can increase compliance costs and create operational rigidities,” Chairman Tuhin Kanta Pandey said in the 2024-25 annual report released on Tuesday.

SIF strategies

SEBI also plans to allow a broader set of strategies under SIFs, which bridge the gap between mutual funds and portfolio management services. SIFs currently offer limited strategies in equity, debt, and hybrid categories, with a minimum investment of ₹10 lakh. It would also be reviewing the existing framework and exploring alternatives to allow FPIs in non-cash settled non-agricultural commodity derivative contracts.

The regulator has identified ₹77,800 crore in ‘difficult to recover’ dues, up nearly 2 percent from last year. Over ₹61,200 crore relates to matters before court-appointed committees, while ₹12,300 crore is tied to parallel proceedings in various courts and tribunals.

Other regulatory reviews are underway, including the margin trading funding (MTF) framework — with the MTF book at ₹92,000 crore as of August 8 — and a committee review of Takeover Regulations to align them with global practices and judicial rulings.

Published on August 12, 2025