SEBI planning to use AI for faster processing of all IPO applications

Securities Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch on Friday (January 10) said that the regulator is exploring the use of Artificial Intelligence (AI) to expedite the IPO approval process.

“AI will help in reducing the regulatory timeline,” Buch said at the NSE's Samvad Symposium in Mumbai,

She emphasised the importance of leveraging technology to streamline operations and meet the growing demand for IPOs.

India’s IPO market has been booming, with a flood of applications being received every week.

Buch highlighted that, as of November 2024, only two IPO applications were more than six months old, a significant improvement from eight in March 2022.

The introduction of AI is expected to further reduce these timelines, allowing for quicker processing of applications.

Buch also pointed out that the success in reducing IPO pendencies reflects SEBI’s ongoing efforts to modernise its regulatory processes.

She mentioned that, as of November 2024, just one mutual fund application was pending for more than six months, down from 69 in March 2022.

Initial Public Offerings (IPOs) allow private companies to raise capital by offering shares to the public through stock exchanges.

Buch, who has been vocal about improving the IPO process, assured SEBI’s commitment to maintaining efficiency and transparency in handling these applications.

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