Archive · 18 Dec 2025
SEBI Defends OFS in IPOs
SEBI, the organization that oversees India's stock markets, is defending the practice of having a lot of offer-for-sale (OFS) in IPOs.
OFS is when early investors sell their shares when a company goes public.
Some people, like the Chief Economic Advisor, are worried that this is making IPOs more about helping early investors leave rather than raising new money for companies.
SEBI says this is a normal part of how money moves in the market and is important for attracting investments.
They believe it's all part of building a strong economy, especially as India aims to become a USD 5 trillion economy.
SEBI defends the high offer-for-sale (OFS) component in IPOs, stating it's part of capital formation.
OFS accounted for 51% of IPO funds in April-October 2024 and increased to 57% in 2025.
Chief Economic Advisor V Anantha Nageswaran expressed concerns that IPOs are becoming exit vehicles for early investors.
SEBI argues that exit routes are necessary for attracting investments and that money is fungible.
SEBI emphasizes the need for different models in capital formation to achieve India's economic goals.
- Who
- SEBI Chairman Tuhin Kanta Pandey and Chief Economic Advisor V Anantha Nageswaran
- What
- Debate on the high offer-for-sale (OFS) component in IPOs
- When
- December 18, 2025
- Where
- India
- Why
- To discuss the role of OFS in capital formation and its impact on public markets
- OFS Percentage (April-Oct 2024)
- 51%
- OFS Percentage (2025)
- 57%
- SEBI Chairman
- Tuhin Kanta Pandey
- SEBI Whole-Time Member
- Kamlesh Varshney
- CEA's Concern
- OFS undermines public market spirit
- CEA
- V Anantha Nageswaran
- India's Economic Goal
- USD 5 trillion economy
- Date of Statement
- December 18, 2025
