Mumbai: There is big news for those investing money in the stock market and businessmen who are preparing to launch their company’s IPO. In view of the ongoing war tension in West Asia (Mid-East) and market turmoil, market regulator SEBI has given a big ‘lifeline’ to the companies. SEBI on Tuesday extended the deadline for IPO and rights issue till September 30, so that companies can launch their offers at the right time.
Why was this big decision taken?
Many industry bodies had filed an application with SEBI that there is huge uncertainty in the market due to the ongoing geo-political tension in West Asia. Investor participation is decreasing and companies are facing a lot of difficulties in raising capital. In view of these circumstances, SEBI has decided to give ‘one-time relaxation’. SEBI believes that this will protect the interests of investors and maintain order in the market.
Now validity of ‘letter’ will remain till 30th September
According to the new circular of SEBI, the validity of Observation Letter of companies whose validity was expiring between April 1, 2026 and September 30, 2026, will now be considered valid till September 30, 2026. Under current rules, companies have to launch their public issue in the market within 12 or 18 months of getting approval from SEBI. This decision will benefit the most those companies who had put their plans on hold due to market volatility, because now they will not have to go through the entire regulatory process again.
More than 190 companies in queue, Rs 2.5 lakh crore at stake
The year 2026 is going to be the biggest year ever for India in terms of IPOs. Talking about the figures, more than 190 companies have either got approval from SEBI or are in the queue. All these companies together are preparing to raise a huge amount of more than Rs 2.5 lakh crore from the market. Earlier, companies had raised Rs 1.59 lakh crore in the year 2024 and about Rs 1.8 lakh crore in 2025. With this step of SEBI, these big companies have now got more opportunity to prepare their base.
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