Kamlesh Chandra Varshney, Who Time Member, Sebi | Photocredit: Debasish Bhaduri
Capital market giver Sebi has advised merchant bankers to be ‘realistic’ about determining the ratings of large IPOs.
During an event, organized by Merchants’ Chamber of Commerce & Industry (MCCI), in Kolkata on Tuesday, Sebi said a member of Kamlesh Chandra Varshney all the time that the ‘valuation aspect’ of large initial public offers (IPOs) is very important because it is not important to ensure that worse -style and growth bobe and growthbecregers are losing a market and growth -chief and Growthowbulgers and growth -oriented.
“When companies on the capital market or trade are carried out on the capital market, the most important part is to be trust, because trust is something that will build a relationship in the long term and leads to long -term sustainable growth.
“We at Sebi have no control over the price aspect. That price aspect is determined by anchor investors and trading bankers. Anchor investors also include investment funds. Where do they get their money? Most of the money is from retail investors. So if we are investing investors, it is also a market dynam in the future. It is also a loss in the future.
Training for DRHP
Varshney said that the regulator has a training session for trading bankers, who prepares Draft Red Herring Prospectus (DRHP) papers for companies that want to become public way. “If they are fully transparent in the first place, we do not have to give observations. So we will also train these merchant bankers that what we have noticed in your DRHP noticed that you do not reveal this and this information,” he said.
Earlier this month in particular this month, SEBI proposed to relax the minimum public offer requirements for very large companies, while it also extends the time lines for them to meet minimum standards for public shareholders.
The proposed framework, if implemented, is intended to alleviate the immediate dilution burden for issuers, while it is still led to gradual compliance with requirements for public shareholders.
As part of this approach, Sebi proposed to maintain the retail quota at 35 percent, in accordance with the existing regulations. Instead of reducing the participation of the retail trade, the regulator wants to tackle the care of the issuers by changing rules with regard to minimal public offer thresholds.
This marks a shift from his earlier consultancy firm, published on July 31, which suggested reducing the retail quota for IPOs above £ 5,000 crore from 35 percent to 25 percent, stating difficulties that emptents are confronted in managing major problems.
In her consultation document, Sebi noted that very large issues often have difficulty thinning substantial interests through an IPO, because the market may not be able to absorb such a large selection of shares.
In the consultation paper, Varshney said: “The idea is how we facilitate large usable listed IPOs to tap the capital market. Now it is not intended to improve a certain IPO. It is a general reform on the capital market.”
“This consultation document is in the public domain. We are waiting for the comments of all stakeholders. It is a classic example of what we say optimum regulations. How do we balance the needs of the market and protection of investors. So this is an example of the ease of things we do now,” he added.
Published August 26, 2025
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