The Securities and Exchange Board of India (SEBI) is set to overhaul the initial public offering (IPO) approval process to make it more efficientCome from Sports betting site. SEBI Chairperson Madhabi Puri Buch announced on Friday that the regulator is developing a templated offer document system. Companies will soon be able to fill in a standardised form to expedite approvals.
Speaking at an industry event organised by FICCI, Buch revealed that SEBI is working on an artificial intelligence tool designed to review IPO documents more quickly. This tool is expected to be operational by December. She emphasised that the aim is to simplify the IPO process, which has often been perceived as complex.
Under the new system, companies will use a template where they only need to complete specific sections, with a separate column for explaining any complex or unique aspects. This approach is intended to streamline the approval process and reduce processing times.
“The document will be precise, meaningful and any variation will be explained separately,” she said, adding that the new process will smoothen the processing time and also demystify the process.
Additionally, SEBI is creating a new fundraising process for listed companies that combines elements of rights issues and preferential allotments. This new method aims to cut the approval duration for preferential issues from 42 days to 23 days by eliminating the need for SEBI’s approval and removing the requirement for merchant bankers.
Under the innovation, the watchdog is eliminating the need for getting approval from SEBI and will also do away with the requirement for merchant bankers as the fundraising document will be a simple two-page one listing out the necessary details for investors precisely.
Buch noted that this innovation is an internal development and not industry-driven. A consultation paper will be released to discuss the proposal further. She also mentioned that making the IPO process faster is a priority, citing current delays in eight applications due to regulatory and procedural hurdles.
To address issues in the IPO application process, SEBI is focusing on returning incomplete or problematic documents to ensure that genuine applications are not held up. The regulator is also working on rationalising disclosure requirements for loss-making companies.
Future initiatives include formalising industry-standard forums and streamlining ongoing disclosure requirements under the listing obligations and disclosure requirements (LODR) framework. SEBI is also implementing a settlement amount calculator on its website and developing a benchmarking agency to compare the performance of infrastructure investment trusts and real estate investment trusts.
Buch urged the market to quickly adopt solutions from regulatory technology firms, as SEBI is rapidly integrating supervisory technology (Suptech) solutions.Come from Sports betting site VPbet
