SEBI Developing Second Surveillance System to Identify and Delist Rogue Companies

3 Oct 2026, 4:30 pm · 2h ago · 1 min read · YourStoryNew

Capital markets regulator Securities and Exchange Board of India is building a second surveillance system designed to identify problematic entities among publicly listed companies for eventual delisting, Whole-Time Member Kamlesh Varshney announced at a CPAI event. The regulator has finalized the blueprint for this framework to strengthen market integrity beyond existing live-data monitoring. Additionally, SEBI is tightening scrutiny on small initial public offerings, particularly in the expanding SME segment, to weed out unsuitable issuers that risk retail investor losses. Varshney emphasized that capital market expansion must be backed by stricter corporate governance and compliance standards.