Sebi clears slew of proposals; mandates tighter disclosure norms for IPOs

Buch said several decisions taken by the Sebi board were aimed at liberalisation and promoting market development

The Securities and Exchange Board of India (Sebi) on Friday tightened the disclosure requirements for all initial public offerings (IPOs) in a bid to bring transparency and rationality to issue pricing.

Besides traditional metrics, companies will now have to disclose key performance indicators (KPIs) that are normally not covered in their financial statements. Also, issuers will have to disclose the details of pricing of shares for transactions carried out ahead of the listing.

“The indicators that companies have already been sharing with private equity investors are relevant to retail investors as well. The new rules will give investors a better basis to