The Securities and Exchange Board of India (SEBI) has issued observations to four companies for their initial public offerings, collectively worth ₹1,435 crore. The approved companies are Varmora Granito, Knack Packaging, Shivalaya Construction, and Behari Lal Engineering. When a company receives final observations from SEBI, it signals regulatory approval to proceed with the IPO process.

Meanwhile, B2B seafood platform Infifresh Foods, formerly known as Captain Fresh, which had filed IPO papers via confidential route for ₹1,700 crore, has withdrawn its offer documents from the regulatory review process.

Varmora Granito IPO Structure

The Rajkot-based Varmora Granito plans to launch an IPO combining a fresh issue worth ₹400 crore and an offer for sale (OFS) of 5.24 crore shares by promoters and existing investors including Kastura Investments. The company will utilize ₹280 crore to clear borrowings of its subsidiaries -- Covertek Ceramica, Varmora Sanitarywares, and Simola Tiles -- with the remaining ₹40 crore allocated for general corporate purposes.

Knack Packaging's Public Offering

Knack Packaging's IPO comprises a fresh issue worth ₹475 crore and an OFS of 70 lakh shares by promoters and existing shareholders. The packaging solutions provider will utilize approximately ₹435 crore for setting up a new manufacturing facility at Borisana, Kadi in Mehsana, Gujarat, while the balance will be earmarked for general corporate purposes.

Construction and Engineering Sector IPOs

Shivalaya Construction's IPO combines a fresh issue of ₹450 crore and an OFS of 2.48 crore shares by promoters. The company will utilize ₹340 crore from the fresh issue for debt repayment, with the remaining amount allocated for general corporate purposes.

Behari Lal Engineering plans an IPO mixing a fresh issue worth ₹110 crore and an OFS of 78.54 lakh shares by promoters and investor shareholder SG Tech Engineering. The Punjab-based company was established as Behari Lal Ispat Pvt Ltd and was converted into a public limited company, renamed to reflect its broader product portfolio and scale of operations.

The Securities and Exchange Board of India (SEBI) has adopted a markedly different regulatory approach, significantly slowing the pace of fresh rule-making while prioritizing the implementation and enforcement of existing regulations. This strategic shift represents a transition from a consultation-heavy approach to a more execution-focused regulatory framework.

Regulatory Approach Transformation

Sandeep Chordia, Chief Operating Officer at Kotak Securities, highlighted the fundamental change in SEBI's regulatory strategy. "Last year was more about bringing out new consultation papers, whereas this year has been more about execution and enforcement of those circulars," Chordia explained. The regulator has maintained its consultative approach before implementing new rules, providing the industry with sufficient preparation time and even deferring certain regulations based on stakeholder feedback.

T+0 Settlement Timeline Extended

SEBI's decision to extend the T+0 settlement implementation deadline indefinitely demonstrates the regulator's commitment to thorough preparation over rushed implementation. The extension came after careful consideration of industry challenges and stakeholder concerns.

The T+0 settlement system presents substantial operational complexities, requiring real-time processing capabilities and significant system modifications across multiple stakeholders. Foreign Portfolio Investors (FPIs) face additional challenges due to geographical separations, necessitating extensive operational adjustments.

Derivatives Market Regulation Impact

SEBI's derivatives market tightening measures have demonstrated measurable success in curbing excessive speculation. The regulator implemented several key restrictions targeting weekly expiries and speculative trading patterns.

The measures included increasing lot sizes and restricting weekly expiries, specifically designed to address concerns about excessive churning on expiry days. These regulations successfully reduced the number of derivative participants while maintaining market liquidity through stable premium volumes.

Market Data and Regulatory Perspective

Chordia acknowledged that approximately 23% of retail investors experience losses in derivatives trading, emphasizing that these markets operate as zero-sum games. However, he noted that determining winners and losers falls outside the regulator's purview, with SEBI's primary concern being excessive speculation rather than individual trading outcomes.

The regulator continues exploring suitability criteria for derivatives trading, though Chordia indicated that India remains some time away from implementing a comprehensive suitability framework. This measured approach aligns with SEBI's broader strategy of thorough consultation and gradual implementation.

Industry Adaptation and Future Outlook

The current regulatory environment has provided market participants with greater certainty and implementation timelines. SEBI's willingness to defer regulations like T+0 settlement based on industry feedback demonstrates a balanced approach between regulatory objectives and practical implementation challenges. This methodology has allowed financial institutions and market infrastructure providers to adequately prepare for upcoming changes while maintaining market stability and operational efficiency.

In line with this approach, the securities regulator has slowed the introduction of new rules, prioritizing the implementation of existing regulations. The T+0 settlement timeline was extended, while the derivatives measures showed a positive impact on curbing speculation. This shift in focus from rule-making to enforcement reflects SEBI's commitment to ensuring effective implementation of existing regulations before introducing new ones.