In November 2025, SEBI released a consultation paper proposing important changes to how pre-IPO lock-in requirements are applied, especially related to pledged shares and investor disclosures:
🧱 1. Current Lock-In Framework
Under SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations:
All pre-issue share capital held by non-promoter shareholders must be locked-in for 6 months from the IPO allotment date.
But in practice, depositories cannot apply the lock-in tag on shares that have been pledged (used as collateral), even though the regulation still applies.
This creates operational problems and can delay IPO processes, since existing shareholders have to be tracked and coordinated before listing deadlines.
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