SEBI proposes monitoring agency rule for all public issues
In short
SEBI has proposed a new rule that would require a monitoring agency for all public issues. The proposal also includes a ₹50,000 fine for non-cooperation and, in some cases, freezing promoters’ demat accounts.
This matters for companies raising money from the public because compliance would be tighter. The reporting does not say when the rule could start or whether it is already approved.
What the reporting says
SEBI proposed making a monitoring agency mandatory for all public issues, alongside a ₹50,000 fine for non-cooperation. The reporting also says the changes would allow direct reporting to stock exchanges and introduce graded enforcement, including possible freezing of promoters’ demat accounts. It is not stated when the proposal would take effect or whether it still needs approval.
Why it matters
SEBI proposed mandatory monitoring agencies for all public issues and a ₹50,000 penalty for non-cooperation, with direct reporting to stock exchanges and graded enforcement that could include freezing promoters’ demat accounts. The measures would affect companies and promoters raising capital, but the reporting does not say when they would start or whether the proposal is final.