Friday, 24 March, 2023

Sebi intends to make new-age companies' IPOs more transparent

<p>Sebi proposed that new tech firms provide more justification and transparency when it comes to pricing their shares in IPOs. The existing IPO guidelines only compel companies to disclose key accounting ratios. However, because start ups are typically loss-making, the regulator felt that more disclosures were necessary. Companies will be required to give a very extensive explanation of how they priced their offering, and compare it to pre-IPO share sales.</p>