Market regulator SEBI will use a generative AI tool, developed in-house, for timely disposal of IPO applications as it has been found to be effective in reducing the time lag largely.
“One of our junior executives in the technical team has recently developed a generative AI tool that can check various compliances in LODR (Listing Obligations and Disclosure Requirements) in no time.
“So, we want to deploy this and within the next few months, hopefully 80 per cent of LODR compliance checks in DRHP, which are now done manually, will be automated using this tool,” said its chairperson Madhabi Puri. Butch said. He was addressing an event organized by investment bankers lobby AIBI here on Friday.
He said the in-house tool, developed by junior officer Manoj, can conduct verification checks in about two weeks.
The SEBI chief said that this will go a long way in dealing with the aging of public issues like IPOs.
He said that the regulator has largely improved its application clearing over the years, as it feels that any regulatory delay is very detrimental to the issuer and the regulator has no power to delay a public issue/market action by a company. There is no reason for. Timing is the most important factor in any market activity.
Referring to the numbers, Buch said that between March 31, 2022, and December 31, 2023, the age-old problem of public issues has been resolved to a large extent, with less than a month to go before SEBI approval. The number of issues has reduced from 14 to 10 in March 2022. In December 2023.
The number of applications pending for one to three months were 16 and 17 respectively.
The number of issues with a delay of 3-6 months was 11 in March 2022, but dropped sharply to 5 in December 2023, and during the same period, the issues with a delay of more than six months were 8 and 4, respectively.
“Any delay of six months was not caused by us, but due to court issues, where we had no role except waiting for judicial resolution,” he said.
Meanwhile, addressing the same event, SEBI whole-time member Anath Narayan said the regulator is concerned about several issues in the valuation methods adopted by alternative investment funds for private capital and seeks help from investment bankers to resolve the same. Has asked for.
“Like our counterparts elsewhere, we are also concerned about the private capital valuation methods being adopted by AIFs as the current methodology smacks of serious conflict of interest as all LPs and managers and partners are skin deep in that business. Which they propose. Inject capital,” Narayan said.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
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