This stern warning comes in the backdrop of recent frenzied activity in the IPO market and a sharp fall in the prices of some of the shares listed recently. SEBI chief was speaking at the annual meeting of the association Investment Bankers of India (AIBI).
Between April and November this year, around Rs 90,000 crore was raised from investors through 76 IPOs. In comparison, around Rs 31,000 crore was raised through 55 IPOs in the financial year 2020-21. “In just eight months, IPO proceeds have almost tripled compared to the level of the previous full year. average size of IPO It has increased from about Rs 350 crore during 2019-20 to around Rs 1,200 crore in this financial year,” Tyagi said.
Amid wide market divisions on how to evaluate new-age share prices, the SEBI chief hinted at the regulator’s willingness to change the rules for these companies. He said SEBI had published a public consultation paper on the issue in November 2021 and the regulator would soon “consider the issues raised in this paper”.
peak market regulator It also listed the responsibilities of merchant bankers, which include protecting the interests of investors, conducting business with fairness and integrity and ensuring correct disclosures to investors at the right time so that investors are aware of the risks associated with IPOs before making investment decisions. Can be done
“It is obligatory on the merchant banker community not only to follow the rules in letter and spirit but also to follow the spirit,” he said. “This may be an opportune time for AIBI to consider and review the standards of due diligence adopted in various issue management activities offered by merchant bankers,” Tyagi said.
The SEBI chief also pointed out that the growth in the IPO market is accompanied by various challenges, including unconventional business models of issuers, disclosure requirements for new age technology companies and valuation concerns.
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