With the Securities and Exchange Board of India (SEBI) tapping artificial intelligence (AI) for faster processing of initial public offering (IPO) documents, the capital markets regulator chairperson Madhabi Puri Buch has reiterated the increasing use of AI within the regulatory body to enhance operational efficiency and expedite processes.
During the Annual Board Meeting of the Association of Mutual Funds in India (AMFI), Buch said, “At SEBI, we today have around a dozen projects on AI. Half of them are to facilitate faster approvals and faster provisions.”
“We are now focusing on IPOs to ensure that no IPO document exceeds three months from the date of the initial application. All of this is the magic of technology,” she stated as reported by Moneycontrol.
She said that if the current efforts continue, there would be no stopping the country’s wealth creation.
Through its ongoing AI projects, SEBI aims to significantly shorten approval times, thereby fostering a more dynamic and responsive regulatory environment.
Last month, at the FICCI 21st Annual Capital Markets Conference, Buch said, “We have already implemented artificial intelligence within SEBI for processing public documents.”
She added, “For instance, let’s say a REIT annual report or an InvIT annual report; earlier, a human being used to read and check whether the annual report was in compliance with our norms. Now, AI performs that task. The SEBI officer validates it and also conducts some manual checks, but 80% of the work is done through AI.”
She added that AI-based processing of IPO documents will naturally fast-track the process.
Meanwhile, the SEBI chief has also urged companies to proactively start adopting innovation and technology.
“If you have to be proactive and know what’s happening in your setup before we get to know… If you don’t have the technology, you will be surprised by what we dig up,” she said, pointing at the compliances required during the IPO processes.
SEBI is also introducing an innovative initiative by establishing a new institution called the Performance Validation Agency, aimed at validating claims related to investment advice. This move to reduce the time required for processing IPO documents coincides with an increasing number of new-age tech companies gearing up to go public.
This year, over 10 startups are expected to launch their IPOs, including well-known names like Ola Electric, FirstCry, and Swiggy, while companies like ixigo and Awfis have already been listed.
