India leads global IPO street: Sebi

We have taken to our Board to make it a formal part of the regulatory architecture. This process of industry-standard forums across the spectrum has been such a learning experience for us. The regulator is also working towards easing the mechanism for listing startups-- Madhabi Puri Buch, chairperson, Sebi

Market Reforms:

♦ Sebi will soon send the proposal for board approval

♦ It recently invited 3 key industry associations to form a Industry Standards Forum

♦ The Industry Standards Forum successfully brought together key stakeholders to draft, implement regulatory standards

Mumbai: Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch said on Friday that India is the top country when it comes to the total number of initial public offerings (IPOs) and issuances globally.

Addressing a FICCI conference in Mumbai, Buch said that the markets regulator is also working towards simplifying the IPO documents and filing procedures templates, along with creating a forum for feedback to be part of the regulatory framework. Sebi will soon send a proposal on this move to the board for approval.

“We have taken to our Board to make it a formal part of the regulatory architecture. This process of industry-standard forums across the spectrum has been such a learning experience for us,” Buch told the gathering.

The capital markets regulator is also working towards easing the mechanism for listing startups. Sebi recently invited three key industry associations to form the Industry Standards Forum. The Industry Standards Forum has successfully brought together key stakeholders to draft and implement regulatory standards.

The regulator is also working on a new process of fundraising for listed companies, which will be a combination of rights issue and a preferential allotment. The overall duration for end-to-end process for getting the go-aheads will nearly halve to 23 days from the present 42 days for preferential issues, which is the fastest route of fundraise, Buch said.

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.

Earlier this week, Sebi launched a comprehensive report on the Indian Capital Markets that covers the most significant reforms, important milestones, and technological innovations, along with their impact on investors in the country. According to the markets regulator, the report delves deeper into recent technological innovations and reforms, several of which are global firsts.

Ashish Kumar Chauhan, MD and CEO, NSE, said that the report provides a comprehensive analysis of India’s Capital Markets evolution over the years, propelled by active retail participation, sustained and high inflow by domestic institutional investors, and strong performance of listed companies.