SEBI : In a bid to improve efficiency, the Securities and Exchange Board of India (SEBI) has decided to incorporate artificial intelligence (AI) in the review of Initial Public Offering (IPO) applications. On Tuesday, SEBI Chairperson Madhabi Puri Buch shared that using AI will significantly speed up the IPO filing process, and with this new approach, the regulator expects to process around 1,000 IPOs over the next two years. During her speech at the annual conference of the Association of Investment Bankers of India (AIBI), Buch revealed that SEBI is also working on a standardized IPO filing template. This simplified template will be designed in a “fill-in-the-blank” format, and any information that doesn’t conform to this standard will be flagged for more detailed review.
AI to Boost Efficiency and Accuracy in IPO Filings
The goal of this new system is to categorize IPO documents into two sections: standard information and special information. SEBI believes this approach will help its officials identify discrepancies more easily and take necessary actions swiftly. The AI system will assist in three main areas: reviewing documents, conducting online searches, and validating content. According to Buch, integrating AI will not only save time but will also significantly improve the efficiency of reviewing IPO applications.
With the new standardized system in place, SEBI officials will be able to prioritize areas that need closer scrutiny, streamlining the process. This means the IPO application process will become more organized and efficient, benefiting both the companies filing IPOs and the investors looking to invest in them. Through these upgrades, SEBI is set to modernize and accelerate the IPO review process, making it faster, more efficient, and more effective for all parties involved.
