SEBI revises lock-in rules for pledged shares

The Securities and Exchange Board of India has introduced a new mechanism for handling lock-in requirements of pledged shares in public issues.

Under the revised framework, depositories can now mark such shares as “non-transferable” when conventional lock-in mechanisms cannot be applied. The change follows amendments to the ICDR Regulations, 2018, aimed at streamlining IPO processes.

Issuers will need to update their Articles of Association, inform lenders, and disclose relevant details in offer documents. The move is expected to enhance transparency and compliance in capital market transactions.