Investing
Sebi Expresses Confidence in Market’s Ability to Handle IPO Surge
© Reuters.
Earlier this week, the Securities and Exchange Board of India (SEBI) raised concerns about potential stress on intermediaries due to a high volume of Initial Public Offerings (IPOs). However, today, Chairperson Madhabi Puri Buch has confirmed Sebi’s trust in the operation of market forces to manage the influx of IPOs without the need for direct intervention.
Buch recalled a past alert regarding system glitches but noted that recent stress tests have shown the infrastructure is capable of handling the current demand. These tests, which included successful T+3 settlement processes, have demonstrated that the market infrastructure is robust enough to support companies seeking to collectively raise ₹7,000 crore through public offerings.
The proactive measures taken by Sebi to ensure the smooth functioning of the market amidst a surge in IPO activity reflect its commitment to maintaining stability and investor confidence. The regulator’s reliance on market mechanisms over direct intervention underscores a strategic approach to overseeing one of the world’s fastest-growing capital markets.
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