SEBI Issues Updated ICDR FAQs on Public Issues & More

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  • Last Updated on 17 May, 2025

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SEBI ICDR FAQs

FAQs Dated 15.05.2025

The Securities and Exchange Board of India (SEBI) has issued an updated set of Frequently Asked Questions (FAQs) on the Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018, providing enhanced clarity on several procedural and regulatory aspects.

1. Scope of the Updated FAQs

The latest FAQs, released as of May 15, 2025, serve as a practical guide for stakeholders involved in capital market activities, covering a broad spectrum of topics including:

1.1 Issues by Indian Companies in India

  • Detailed guidance on the regulatory requirements applicable to public issues, rights issues, preferential issues, and Qualified Institutions Placement (QIP).
  • Clarifications on pricing norms, lock-in requirements, and disclosure obligations.

1.2 Issues by Foreign Companies – Indian Depository Receipts (IDRs)

  • Instructions on the process for foreign companies to raise capital in India through IDRs.
  • Key disclosures, eligibility criteria, and compliance frameworks involved in IDR issuance.

1.3 ASBA Facility (Applications Supported by Blocked Amount)

  • Operational procedures for investors applying through the ASBA mechanism, where application funds are blocked in the applicant’s bank account until allotment.
  • Roles and responsibilities of Self Certified Syndicate Banks (SCSBs).

1.4 UPI Integration with ASBA in Public Issue Process

  • Updated framework for the use of Unified Payments Interface (UPI) as a payment mechanism in the retail investor segment of public issues.
  • Step-by-step guidance on the UPI application flow, mandate approval, and reconciliation process.

1.5 Rights Entitlement (RE) Process

  • Guidance on the handling and trading of Rights Entitlements, which are issued as part of the rights issue process.
  • Clarifications on dematerialisation, renunciation, and market timings for REs.

2. Conclusion

These updated FAQs aim to streamline market processes, reduce ambiguities, and support efficient compliance with the ICDR framework. Issuers, merchant bankers, investors, and other stakeholders are encouraged to refer to the document to align their practices with SEBI’s expectations.

Click Here To Read The Full Updates

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied