“Our inspections reveal that due diligence is not always independent and sometimes depends on the issuers. Projections, especially for working capital and capital investments, should be independently verified and backup paperwork should be maintained for all material declarations. Basic controls, such as site visits, should be demonstrated with full reports and photographs with geo-tagging and time stamps,” Pandey said.
India ranks first globally in number of IPOs and third in value, with 311 IPOs raising ₹1.7 lakh crore in the first nine months of this fiscal. The regulator’s internal estimates indicate a strong fundraising pipeline and issuers could raise ₹1.5 lakh crore. The Sebi chairman also expressed concerns over the discrepancy between the valuations in the unlisted stock market and the prices discovered during the IPO book-building process.
“There is of course a problem when it comes to the listing: there is a discrepancy between the prices they have charged on the unlisted side and the prices that are discovered when the book is made,” Pandey said. “Pre-listing and post-listing are different worlds. There are a large number of unlisted companies, and how we deal with this we need to investigate, in consultation with the Ministry of Corporate Affairs.” In a separate development, Pandey said the regulator has approved in principle the National Stock Exchange’s settlement application regarding the co-location case. “That (settlement application) is pending before our various committees. But in principle we agree with the settlement, he said. In June 2025, the NSE had filed two applications with Sebi to settle the long-standing co-location and dark fiber cases by offering to pay a total amount of over Rs 1,300 crore. Last week, the Sebi chairman had said at a press conference that the regulator is likely to issue a no-objection certificate for the NSE IPO by month end.
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