Mumbai, Nov. 14 -- The Securities and Exchange Board of India (SEBI) has proposed regulatory changes aimed at streamlining the IPO process by removing long-standing operational bottlenecks and improving transparency for investors evaluating upcoming listings.

SEBI has suggested amendments to the Issue of Capital and Disclosure Requirements (ICDR) Regulations, specifically to introduce a new technology-enabled framework that would allow pledged shares to be locked in seamlessly.

Currently, all pre-issue shares held by non-promoter investors-except for a few exempt categories-must remain locked in for six months after allotment in an IPO.

However, depositories are not equipped to mark pledged shares as "locked-in," creating significant c...