SEBI to Utilize AI for 1,000 IPOs in 2 Years, Says Madhabi Puri Buch

Synopsis

The Securities and Exchange Board of India (SEBI) is set to adopt artificial intelligence (AI) to process up to 1,000 IPOs in the next two years, improving efficiency in document review, according to Chairperson Madhabi Puri Buch at the AIBI annual convention.

Key Takeaways

SEBI is implementing AI for IPO processing.
Up to 1,000 IPOs to be managed in two years.
Standardized IPO template will simplify filings.
Focus on document review and exception reporting.
Enhancing efficiency for companies and regulators.

Mumbai, Jan 21 (NationPress) The Securities and Exchange Board of India (SEBI) is set to leverage artificial intelligence (AI) to manage up to 1,000 initial public offerings (IPOs) over the next two years, aiming to streamline the IPO document review process efficiently, as announced by its Chairperson Madhabi Puri Buch on Tuesday.

During her address at the Association of Investment Bankers of India’s (AIBI) annual convention, Buch detailed that SEBI is developing a standardized IPO template to enhance the ease of filing for companies and their merchant bankers.

This innovative template will adopt a “fill-in-the-blanks” structure, where any information that deviates from the standard format will be flagged for detailed examination, she explained to the attendees.

The proposed system will categorize IPO documents into two segments: standard information and exceptional details.

By concentrating on sections that do not conform to the template, SEBI aims to facilitate its officers in identifying and rectifying irregularities. This initiative is anticipated to save considerable time for both companies and regulatory bodies.

“With the potential to manage up to 1,000 IPOs in the next two years, this initiative will significantly alleviate the workload for all parties involved,” Buch stated.

The AI tools are designed to assist in three primary areas — document review, online search, and content verification.

SEBI’s exception reporting system is expected to further enhance efficiency. By distinguishing between standard and non-standard sections, officers can prioritize their assessment where it is most crucial, thus optimizing the review process.

“This methodology will not only conserve time but also improve the overall efficiency of IPO document preparation and assessment,” Buch concluded.

Mahavir Lunawat, Chairman of AIBI, remarked that the initiatives launched at this year’s convention represent a crucial advancement toward establishing a robust and future-ready merchant banking framework.

“The new initiatives aim to tackle significant gaps, including the increasing demand for skilled professionals and the necessity for standardization in practices. These efforts highlight AIBI’s dedication to promoting innovation, transparency, and international collaboration to support the country's ambitious economic growth objectives,” Lunawat stated.