Markets regulator Sebi has unveiled comprehensive proposals to overhaul the trading-related framework at stock exchanges, targeting simplification of rules, elimination of duplication, and reduction of compliance burden for market participants. The initiative forms part of Sebi's broader strategy to facilitate ease of doing business across all stock exchanges, including commodity derivatives platforms.

Unified Framework Consolidation

Sebi's consultation paper proposes merging multiple overlapping provisions into a single, consolidated framework applicable to both equity and commodity segments. The unified system will encompass:

• Trading rules and price bands
• Circuit breakers and call auction mechanisms
• Bulk and block deal disclosures
• Margin trading facility (MTF) operations
• Unique client code (UCC) and PAN requirements
• Trading hours and daily price limits
• Liquidity enhancement schemes

The regulator suggests carving out provisions specifically applicable to clearing corporations and moving them into a dedicated master circular to avoid regulatory overlap.

Enhanced Transparency and Reporting

To improve market transparency, Sebi proposes significant changes to disclosure mechanisms:

The regulator recommends presenting market-wide circuit breaker rules, dynamic price band flexing, IPO price bands, and call auction procedures in tabular format while removing duplicative or outdated operational examples.

Margin Trading Facility Reforms

Sebi has proposed substantial changes to MTF norms, including key financial requirements:

The proposals include aligning timelines for submitting net-worth and auditor certificates with financial reporting cycles and deleting redundant due diligence clauses.

Liquidity Enhancement and Market Making

The framework proposes removing obsolete market-making provisions for the cash segment and merging them into a principle-based Liquidity Enhancement Scheme (LES) framework. This unified approach will cover equities, derivatives, and commodities uniformly. Under the revised structure, exchanges will gain greater flexibility in designing schemes, conducting half-yearly board reviews, and offering incentives, with higher caps for new exchanges or new segments.

Operational Simplifications

Sebi proposes eliminating several outdated provisions, including negotiated-deal exemptions, guidelines for dedicated debt segments, forward contracts in commodities, MOU-based trading, and unnecessary reporting requirements. Trading hours across all segments—equity, derivatives, commodities, currency, RFQ, EGR, and Social Stock Exchange—will be consolidated into a single section.

Client Code and Compliance Liberalisation

The proposals include liberalising Client Code Modification rules to:

• Permit genuine corrections
• Allow PAN-linked multiple UCCs for specified client categories
• Facilitate easier obligation transfer among FPI family accounts
• Increase waiver frequency to once monthly
• Discontinue quarterly waiver reporting to Sebi

Penalties will be harmonised between exchanges and clearing corporations, while short-selling and securities lending and borrowing provisions will be clarified and incorporated into the main framework with mandated daily disclosures.

Implementation Timeline

Sebi has invited public comments on all proposals until January 30, indicating the regulator's commitment to stakeholder consultation before implementing the comprehensive framework changes.

The Securities and Exchange Board of India (Sebi) has granted approval to five initial public offerings (IPOs) representing a diverse portfolio of companies across digital lending, alcoholic beverages, textiles, precision engineering, and engineered fabrics sectors. The combined fundraising potential of these offerings exceeds ₹3,000 crores, marking significant capital market activity.

Kissht Leads with Largest Digital Lending IPO

OnEMI Technology Solutions, the company operating the digital lending platform Kissht, secured approval for the largest offering in this batch. The IPO structure includes multiple components designed to provide flexibility and growth capital.

Founded in 2016, Kissht operates as a digital lending platform through its mobile application, providing credit solutions for both consumption and business requirements. The company positions itself as a fast and personalised lending service provider in the competitive fintech space.

Alcobrew Distilleries Enters Premium Beverages Market

Alcobrew Distilleries received approval for its IPO comprising a fresh issue worth up to ₹258.26 crores alongside an offer for sale of 1.8 crore shares by promoters. The company manufactures and markets alcoholic beverages across multiple categories and price segments throughout India.

Product Portfolio:

• Whisky, vodka, and rum categories
• Brand portfolio includes Golfer's Shot, White & Blue, White Hills, and One More
• Multi-segment pricing strategy covering various market tiers

The proceeds from the fresh issue will support business expansion initiatives, working capital requirements, and general corporate purposes, enabling the company to strengthen its market position in India's alcoholic beverages sector.

Manufacturing Sector IPOs Gain Momentum

Three manufacturing companies across different specialisations also secured Sebi approval, demonstrating strong interest in industrial sector public offerings.

Aastha Spintex Textile Expansion

Aastha Spintex plans an entirely fresh issue of up to ₹160 crores through the book-building route. The textile player will primarily utilise proceeds to fund the acquisition of Falcon Yarns along with general corporate requirements. BOI Merchant Bankers and PNB Investment Services serve as book-running lead managers, while Bigshare Services acts as the registrar.

Indo MIM Precision Engineering Growth

Incorporated in 1996, Indo MIM specialises in manufacturing precision components using metal injection moulding technology. The company's IPO structure reflects both growth and debt optimisation strategies.

Kusumgar Engineered Fabrics

Mumbai-based Kusumgar plans to raise ₹650 crores entirely through an offer for sale by promoters, with no fresh issue component. The company manufactures woven, coated, and laminated synthetic fabrics serving diverse end markets including aerospace and defence, industrial and automotive, and outdoor and lifestyle segments.

Market Implications

These five IPO approvals represent significant diversity in sector representation and fundraising approaches. The mix includes both growth-focused fresh issues and liquidity-providing offer for sale components, catering to different investor preferences and company requirements. The approvals span established manufacturing businesses and emerging fintech platforms, reflecting the breadth of companies seeking public market access.