“We have already implemented artificial intelligence (AI) within Sebi for processing of public documents. For instance, a human used to read and see whether the annual report of a REIT or an InvIT is in compliance or not is being done by AI now. The officer validates it and also does some manual checks but 80% of the work is done using AI,” Buch told market participants at a FICCI conference.
The regulator is also working on AI-based processing of IPO documents with the final approval coming from an officer. “The normal track (of processing of IPO applications) would be so fast that you won’t need fast track,” she said.
To demystify the entire process of IPO filing and making it easier for all the young companies waiting to list, Buch said the team is working on starting a templatised fill-in-the-blank form which will make it simpler.
“We need to bring time for clearing applications for capital raise to a minimum,” Buch said while assuring industry leaders that Sebi never rejects an application for reasons like active or passive voice used in the application.IPO applications are rejected when, for example, a director of the merchant banker was allotted shares before the IPO or the merchant banker is under Sebi investigation.Earlier in the week, Sebi had returned IPO papers of Vishal Mega Mart, education NBFC Avanse Financial Services, PE firm TPG Capital-backed Sai Life Sciences, and BMW Ventures. During the event, Buch also cited data showing that India ranks No.1 on the global map in terms of number of IPOs and issuances anywhere in the world with almost one issuance every trading session.
Sebi had recently released a consultation paper proposing a series of seven measures to control the excessive retail frenzy in the derivatives market.
