SEBI reveals how AI will help handle upcoming IPO boom
What's the story
The Securities and Exchange Board of India(SEBI) will soon transform its method of processing initial public offering (IPO) documents using artificial intelligence (AI). Chairperson Madhabi Puri Buch made the announcement at the Association of Investment Bankers of India (AIBI) Annual Convention. The regulator is working on a standardized IPO template to simplify the filing process for issuers and merchant bankers.
Template details
SEBI's new IPO template: A fill-in-the-blanks approach
Buch described the new IPO template as a "fill-in-the-blanks approach." Any information that deviates from this standard format will be highlighted for exception reporting. This division into standard and exceptional sections is expected to significantly streamline both document preparation and regulatory review. The system also includes an exception reporting mechanism that separates documents into two parts: standard and exceptional.
Technological support
AI tools to support IPO document processing
SEBI is also using publicly available AI tools to help with IPO document processing. These tools do three main things: Document Analysis, External Scanning, and Document Tallying. The AI scans IPO submissions for compliance with regulatory standards, searches the internet and social media for references to the company and its personnel, and reviews the document's contents for consistency.
Efficiency boost
SEBI's AI initiative aims to improve efficiency
Buch said this initiative is expected to greatly improve efficiency, particularly with an expected surge in IPO activity over the next two years. She also said this technological leap is expected to improve efficiency as SEBI braces for a major jump in IPO filings. "With projections of 1,000 IPOs over the next two years, this initiative will greatly reduce the workload for both issuers and SEBI," Buch said.