Is there any mechanism for monitoring of use of proceeds raised through public issue? Explain briefly.

Yes, there is a mechanism for monitoring the use of proceeds raised through a public issue. According to Regulation 41 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018: If the issue size, excluding the size of offer for sale by selling shareholders, exceeds ₹100 crore , the issuer shall make arrangements for the use of proceeds of the issue to be monitored by a credit rating agency registered with the SEBI. This monitoring requirement does not apply to an issue of specified securities made by a bank or public financial institution or an insurance company. The monitoring agency shall submit its report to the issuer in the format specified in Schedule XI on a quarterly basis , till 100% of the proceeds of the issue have been utilised. The board of directors and the management of the issuer shall provide their comments on the findings of the monitoring agency as specified in Schedule XI. The issuer shall, within forty-five days from the end of each quarter, publicly disseminate the report of the monitoring agency by uploading the same on its website as well as submitting the same to the stock exchange(s) on which its equity shares are listed.