The Securities and Exchange Board of India (SEBI) will soon introduce a set of reforms for the primary market and debt securities, aimed at simplifying disclosures, easing fund-raising and deepening investor participation.
Speaking at the SBI Banking & Economics Conclave 2025 on Thursday, SEBI Chairman Tuhin Kanta Pandey said the regulator plans to rationalise the offer document summary and make it separately available to investors for feedback.
“The process for IPO-bound companies whose pre-IPO shares are pledged is being streamlined. The proposed framework will ensure lock-in requirements are automatically enforced even if the pledge is invoked or released, thereby preventing listing delays. Consultation papers on these proposals will be issued soon,” said Pandey.
To strengthen retail participation in the corporate bond market, SEBI will launch a nationwide investor education campaign in consultation with market stakeholders. The regulator has also floated proposals, allowing issuers to offer incentives to specific investor categories to encourage retail buying of debt instruments.
bond derivatives
Pandey said SEBI is working with the Reserve Bank of India (RBI) on the possible introduction of bond derivatives to improve market liquidity and provide new tools for risk management.
On the commodities front, SEBI and RBI are collaborating on a regulatory framework to facilitate prudent institutional participation, including by banks, insurance firms and pension funds. A proposal to allow foreign portfolio investors (FPIs) to trade in non-cash settled, non-agricultural commodity derivatives is also under examination.
Pandey further said financing India’s growth and self-reliance will depend on deepening equity, debt and alternative investment markets to complement the banking system. “SEBI remains a responsive, forward-looking regulator committed to fostering a robust, inclusive market ecosystem,” he said.
This comes amid record domestic investor participation, with over 13.5 crore unique investors in the capital market and mutual fund investors exceeding 5.6 crore. SEBI’s proposed reforms aim to further democratise access to capital markets, while enhancing efficiency and transparency across instruments.
steps taken
The regulator has taken a series of steps already to ease market access and boost confidence. IPO listing timelines have been reduced to T+3, and rights issue timelines cut to 23 days. The face value of corporate bonds has been lowered to ₹10,000 to attract retail investors, and online bond platforms have been introduced to simplify secondary trading