Revolutionizing IPOs: SEBI to Leverage AI for Processing 1,000 IPOs in 2 Years

Mumbai (The Uttam Hindu): The Securities and Exchange Board of India (SEBI) will now use Artificial Intelligence (AI) to process Initial Public Offering (IPO) applications filed by companies.

Sebi Chairperson Madhabi Puri Buch on Tuesday said the regulator is adopting AI to review IPO applications. This is expected to process close to 1,000 IPOs in the next two years. Speaking at the annual conference of the Association of Investment Bankers of India (AIBI), Buch said Sebi is working on a standard IPO template to simplify the filing process for companies and their merchant bankers. In her address, she said the new template will be in a "fill in the blanks" format. Any information that does not fit the standard format will be marked separately for closer review.

The system aims to divide IPO documents into two parts, which will include standard and special information. SEBI hopes that this will make it easier for its officers to identify and resolve irregularities. The initiative is expected to save time for both companies and regulators. AI will help in three major ways, including document review, online search and content check. According to Buch, this will not only save time but also increase the efficiency of IPO documents and their review. SEBI's special information reporting system will further improve efficiency. By following standard and non-standard sections, officers can prioritize their investigation where it is most needed. This will streamline the review process.

“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.