The Securities and Exchange Board of India (SEBI) is set to adopt Artificial Intelligence (AI) to streamline the processing of initial public offering (IPO) documents, aiming to handle up to 1,000 IPOs in the next two years. This announcement was made by SEBI Chairperson Madhabi Puri Buch during the Association of Investment Bankers of India (AIBI) Annual Convention.
Buch revealed that SEBI is working on a standardised IPO filing template to simplify companies’ and merchant bankers’ submission process. The proposed template will follow a “fill-in-the-blanks” format, with deviations flagged for detailed scrutiny. This system will categorise IPO documents into two parts: standard information and exceptional details, enabling SEBI officers to focus on irregularities more effectively.
“This initiative will save time for both companies and regulators, significantly reducing the workload while improving efficiency,” said Buch. The integration of AI tools will further enhance the process by enabling document review, online searches, and content checks.
Additionally, SEBI’s exception reporting mechanism will prioritise the review of non-standard sections, streamlining operations and boosting the efficiency of IPO document preparation and evaluation.
Highlighting the importance of these measures, Mahavir Lunawat, Chairman of AIBI, stated that the initiatives introduced during the convention aim to build a robust merchant banking ecosystem. He emphasised the importance of addressing critical gaps, such as the shortage of skilled professionals and the need for standardised practices, to support India’s ambitious economic growth goals.
Also Read | SEBI and NISM Host Samvad Symposium: Driving Growth Through India’s Securities Market
These steps by SEBI underscore its commitment to leveraging technology for regulatory efficiency, ensuring transparency and innovation in the IPO process.
