What is the role of SEBI in regulating IPOs in India

SEBI (Securities and Exchange Board of India) plays a crucial role in regulating IPOs (Initial Public Offerings) in India. Its responsibilities in controlling the high valuation of IPOs can be summarized as follows:

• Approval and Disclosure: SEBI ensures that the IPO offer documents contain accurate and complete information, thereby preventing the manipulation of investors. It reviews the disclosures made by companies, including financial statements and risk factors, to protect the interests of investors.
• Pricing Guidelines: SEBI sets pricing guidelines to prevent overvaluation in IPOs. It ensures that the price at which shares are offered to the public is fair and reasonable, reflecting the true value of the company.
• Underwriting and Due Diligence: SEBI mandates that IPOs be underwritten by merchant bankers who perform due diligence. SEBI reviews the due diligence process to ensure that adequate checks are in place to ascertain the credibility and financial health of the company.
• Monitoring Trading: SEBI monitors trading in IPO stocks to identify any irregularities or price manipulation. It takes necessary action to maintain market integrity and protect investor interests.
• Investor Grievances: SEBI provides a platform for investors to address grievances related to IPOs. It resolves disputes, investigates complaints, and takes appropriate actions against any violation of regulations.

These responsibilities of SEBI contribute to a fair and transparent IPO market in India, protecting investors from potential risks associated with high valuations.