SEBI to form high-level panel to review conflict of interest rules for board members
The approval came during SEBI’s first board meeting under its new chairperson, Tuhin Kanta Pandey.
SEBI chief Madhabi Puri Buch on Tuesday said the capital market regulator is actively considering a platform to allow share allotees in a public issue to trade in the security even before the formal listing.
She was speaking at an event and said that the focus is not on determining the “right price” of an IPO but ensuring that investors have access to all necessary data to assess whether the price is appropriate.
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“I think the test that all of us put on every IPO document that comes is that if we were the investor and we were reading the document, particularly the section on pricing, is there enough information there which will help us to assess whether this is a good price or a not-so-good price? So that is the test,” she said.
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“Between the three days when the shares are allotted to the time the shares start trading, there is a lot of curb trading,” Buch said. If investors want to do this, why not give them the same opportunity in a properly regulated space, she added.
“The shares may not have started trading on the markets, but the person might have been allotted those shares, so he has the entitlement for those shares.”
She reiterated that SEBI’s role is not to intervene in pricing, a responsibility explicitly removed when the Controller of Capital Issues (CCI) was replaced by SEBI under the Act of Parliament. The Controller of Capital Issues was the market’s regulatory authority, and derived power from the Capital Issues (Control) Act, 1947.
Buch also discussed the regulations introduced for non-profit-making companies and their Key Performance Indicator (KPI) disclosures.
“Our logic is, are you giving enough information to the audit committee or to the investors for them to make up their mind on whether they should support a resolution or not,” Buch explained.
Buch was speaking at the 13th Edition of the AIBI Annual Convention 2024-2025 in Mumbai.
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