SEBI Overhauls IPO Lock-in Norms, Simplifies Disclosures for Investors

• SEBI approved changes to IPO lock-in regulations and disclosure framework to ease compliance and improve investor access.
• A new technology-driven system will automatically lock-in pledged pre-issue shares, streamlining the process for issuers and depositories.
• ICDR provisions are revised, empowering depositories to manage pledges directly, ensuring shares remain locked-in even if pledged.
• Companies must amend their Articles of Association (AoA) to reflect these lock-in requirements for pledged shares.
• Instead of a distinct summary, a draft abridged prospectus with a QR code will be available at the DRHP stage for easier investor access to key information.

Why It Matters: SEBI's reforms aim to simplify IPO compliance for companies and enhance transparency for investors.