The IPO price is at the discretion of the company, but full disclosure is required President of Sebi

Transparency is the top priority of the Securities and Exchange Board of India (Sebi), so it will seek more data from entities, said Madhavi Puri Buch, chairman of the regulator.

Speaking to the Federation of Indian Chambers of Commerce and Industry (FICCI), Buch said transparency helps investors build trust, which is essential for the growth and development of a business.

In order to keep up with the rapidly growing corporate, business and market world, the Reserve Bank of India (RBI) will accelerate its pace of forming and regulating new policies as the regulator cannot be left behind.

Although she indicated that Sebi had no say in the business or operation of a company, he had a small stake in how the company did it.

However, she reiterated that listed companies would disclose everything about their activities to ensure trust and transparency will be a must.

On the initial public offering (IPO) of new era companies, Buch added that the companies will decide the price and valuation of their shares and the Sebi cannot interfere.

She further added that companies are free to price their shows at their own discretion.

Earlier, Sebi was criticized for allowing loss-making new-age internet companies to issue their initial stake sales at ultra-rich valuations that don’t trade up to 50% below the issue price.

If a company issues its shares in a pre-IPO placement or even earlier at a certain price lower than the proposed IPO price, the company must disclose the reason for the price difference, said the president of Sebi.

According to Sebi’s Chairman, in order to build investor confidence, the company should disclose any changes resulting in price variation in IPO and pre-IPO offerings, even if the company’s matrix remains unchanged. .

Companies must also notify Sebi of any disputes involving key leadership positions in the documentation. SEBI regulations not only provide protection for investors, but also fundraising entities.