SEBI working on various initiatives to streamline IPO process, enhance transparency, notes Madhabi Puri Buch

The SEBI (Securities & Exchange Board of India) chairperson Madhabi Puri Buch said that the market regulator is working on several initiatives to streamline the IPO process and enhance transparency.

The SEBI chairperson was speaking at an event of the 21st annual capital markets conference /capital market reforms 2.0, Viksit Bharat in Mumbai. She mentioned that to aid companies in the IPO filing process, the market regulator is also planning to introduce a demystified filing document.

"This initiative aims to simplify the requirements and make the process more accessible to companies" said Buch on the IPO filing process.

The SEBI chairperson also added that clearing time for IPO applications should be brought to a minimum and emphasized the importance of reducing the ageing of applications.

Buch also highlighted that India leads the global tally in the total number of IPOs issued. The market regulator is also planning to release a consultation paper aimed at strengthening the framework for Rights Issues and Preferential Allotments.

Buch added, that in terms of the amount of capital raised & stock exchanges, Indian markets are at number five globally. Indian markets have given a compounded growth of 49% in the last five years, which no other major economy did.

"If you look at the compounded growth rate of 49% over the last five years, nobody is equalling our growth rate," said Buch.

She also highlighted that the NSE is also working on a process to use AI technology to process IPO documents and now, AI has also entered into the processing of REIT annual report or an INVIT annual report.

"We are working on AI-based processing of IPO documents", she said.

Talking about the growth of the Indian economy Buch said the financial economy is very important for the goal of Viksit Bharat.

"An extremely important pillar for Viksit Bharat is the economy, the real economy, the financial economy, the markets. It is a matter of pride to us that in the global lead tables, India ranks number one in the total number of IPOs and issuances in the world" added Buch.