IPO News: Market regulator SEBI is going to take a big initiative. Actually, SEBI will use AI to process IPO applications.
Artificial Intelligence (AI) is rapidly spreading in many countries of the world including India. AI is being used in many sectors. There is a debate going on all over the world regarding its impact. Market regulator Securities and Exchange Board of India (SEBI) will now use AI to process IPO applications filed by companies.
SEBI Chairperson Madhabi Puri Buch said on Tuesday that the market regulator is adopting AI to review IPO applications. Due to this, around 1,000 IPOs are likely to be processed in the next 2 years.
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Easy filling process
Speaking at the annual conference of the Association of Investment Bankers of India (AIBI), Buch said that SEBI is working on a standard IPO template to simplify the filing process for companies and their merchant bankers. He said the new template will be in a “fill in the blank” format. Any information that does not fit the standard format will be flagged separately for closer review.
Time saving expectations
The purpose of this system is to divide the IPO documents into two parts, which will include standard and special information. SEBI hopes that this will make it easier for its officials to identify and resolve irregularities. This initiative is expected to save time for both companies and regulators.
Likely to handle up to 1,000 IPOs in next 2 years
AI will help in 3 major ways, which include document review, online search and content check. According to Buch, this will not only save time but will also increase the efficiency of IPO documents and their review. SEBI‘s special information reporting mechanism will further improve efficiency. By following the standard and non-standard sections, officers can prioritize their investigation where it matters most. “With the potential to handle up to 1,000 IPOs over the next two years, this move will significantly reduce the workload for everyone involved,” Buch said.
Wrap-Up: Key Takeaways
- SEBI Adopts AI for IPO Processing: SEBI is leveraging artificial intelligence to enhance the efficiency and speed of IPO application reviews, signaling a transformative step in India’s financial markets.
- Simplified Filing Process: A new standard IPO template in a “fill-in-the-blank” format will make it easier for companies and merchant bankers to submit accurate filings, with non-standard information flagged for detailed review.
- Time-Saving and Efficient: By dividing IPO documents into standard and special sections, AI will enable SEBI officials to focus on irregularities, saving significant time for both regulators and companies.
- Boost in IPO Handling: SEBI aims to process 1,000 IPOs within the next two years, a feat made possible by AI’s ability to assist in document review, online search, and content validation.
- Enhanced Transparency and Productivity: The adoption of AI will improve efficiency, reduce workloads, and ensure a streamlined IPO process, benefiting regulators, companies, and investors alike.
