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NSE IPO: SEBI Chairperson Tuhin Kanta Pandey on Monday said that the process to review the Listing Obligations and Disclosure Requirements (LODR) regulations has started. He said the exercise will involve detailed consultations before any final decision is taken.

Speaking on the sidelines of the CII Financing National Summit in Mumbai, Pandey said the regulator will release a consultation paper as part of the process. He added that clarity on the No Objection Certificate for the NSE IPO will be provided “at the appropriate time”.

Pandey also responded to recent remarks by Chief Economic Adviser V Anantha Nageswaran, who said that IPOs are increasingly being used as exit routes for existing investors rather than for fresh fund-raising.

Pandey said Sebi has already strengthened the framework. He explained that the regulator has revised certain metrics used in the regulations.

“Earlier, open interest was used, but now we have introduced the delta metric. With delta, the assessment becomes more accurate. They were also talking about premium versus open interest,” he said.

He added that IPOs naturally serve multiple purposes.

“An IPO allows both exit and fundraising. It depends on the specific IPO. Many companies are already well-established by the time they come to the market. When they become mature, it is natural that some investors will choose to exit because a premium has already been created,” Pandey said.

He noted that several companies also launch IPOs to raise new capital for greenfield projects and business expansion. “These are a different kind of IPO,” he said.

Pandey emphasised that Sebi’s approach is to allow all types of IPOs in the capital market.

“From our perspective, every variety of IPO should exist in the capital market, and all kinds of possibilities should remain open,” he said.

(with ANI inputs)