Sebi plans new document format to fast-track IPO approvals

MUMBAI: Markets regulator Sebi is working on a new 'fill in the blanks' type of format for IPO-bound companies to file their offer documents with it. The move would make it easier for investors to comprehend and speed up the process of regulatory observations. The regulator is developing a mechanism to use AI for faster IPO-approval process, Sebi chief Madhabi Puri Buch said.

Sebi is working on a template which IPO-bound companies can fill up. In addition to faster approval for IPOs, the process will also help in demystifying the offer documents, Sebi chief said. The new format for IPO applications will also have separate sections for explaining complexities related to the offerings.

"The document will be precise, meaningful and any variation will be explained separately," she said. Puri Buch was speaking at industry trade body FICCI's annual Capam event in the city.

Currently, all companies that have filed offer documents with Sebi aim to raise about Rs 80,000 crore from the market, sources said. The deluge of IPO application papers had forced Sebi to allocate resources from other departments to the one that deals with new offers, they added.

Sebi is also working on a process that will combine the processes of taking regulatory approval for rights and preferential issues. The plan is to have a two-page document that will have all the relevant information relating to the planned fund-raising but could nearly halve the time for obtaining Sebi's approval. The process would also be cost effective since it would eliminate the intervention of merchant bankers, Sebi chief said.

Later during the conference, Sebi's whole-time member Kamlesh Chandra Varshney said that the regulator was finalising a consultation paper to bring in rules to regulate financial influencers. The aim is to eliminate the impact of the ones who are not under Sebi's regulatory purview.