SEBI Moves to Fast-Track IPO Approvals, Streamlines Regulations Amid Record Fundraising

The Securities and Exchange Board of India (SEBI) is taking steps to expedite approvals for initial public offerings (IPOs) and ease regulatory procedures, aiming to sustain India’s record fundraising momentum in 2025. According to recent reports, SEBI plans to approve most IPO applications within three months of filing, significantly reducing the previous wait time of up to six months.

Faster Approvals Through Technology and Coordination

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To accelerate the clearance process, SEBI is leveraging artificial intelligence tools to review IPO documents for errors and gaps efficiently. In addition, the regulator is working more closely with merchant bankers to minimise repeated queries and streamline communication. These measures are expected to reduce bureaucratic delays, allowing companies to go public faster while maintaining regulatory compliance.

IPO Fundraising Trends and Pipeline

Indian companies have raised $8.2 billion through IPOs up to August 2025. Although this is lower than the $20.5 billion raised in 2024, India remains the world’s second-largest IPO market after the United States, according to LSEG data.

The pipeline for upcoming public offerings is robust. Approximately $13 billion worth of IPOs have already received approval, while another $18.7 billion is awaiting SEBI’s nod, according to PRIME Database. Notable upcoming issues include the Indian arm of LG Electronics, Credila Financial Services, Physicswallah, and WeWork India Management.

Confidential filings are also becoming more popular; so far in 2025, 17 corporations have chosen this path, up from only four in 2022 and 2024. Confidential filings give businesses more freedom and privacy by limiting disclosures at first while they get ready to go public.

Investor Participation and ESOP Regulations

Despite outflows in the secondary market, foreign investors have participated actively, purchasing about $4.7 billion worth of shares through IPOs. In a bid to support startups, SEBI has also allowed founders to retain employee stock options (ESOPs) granted at least a year before submitting draft IPO papers, providing flexibility in compensation structures while planning for public offerings.

Conclusion

SEBI is putting India in a position to sustain consistent IPO activity until 2025 by reducing clearance times, using technology, and improving regulatory standards. The nation is expected to maintain or perhaps surpass the record IPO fundraising levels from the previous year due to a robust pipeline of IPOs and increasing investor involvement. These actions strengthen India's position as one of the world's top IPO markets.