Easing IPO DRHP filing norms: SEBI may come up with discussion paper this week – details here

Easing IPO DRHP filing norms: The Securities and Exchanges Board of India (SEBI) is likely to release a discussion paper this week to ease initial public offer (IPO) filing norms, Zee Business Special Correspondent Tarun Sharma said in his exclusive report quoting sources on Wednesday. 

According to Sharma, “SEBI may accept an informal DRHP (draft red herring prospectus) from the companies who are planning to launch an IPO and may give its suggestion or guidance on it.” 

The company then shall file an updated DRHP with the market regulator, this will reduce the time of the whole IPO process, Sharma said, adding further that the informal DRHP will not be public and only when the SEBI gives the final go ahead, it will be public. 

This phenomenon of filing an informal DRHP is already in function globally, and the same is likely to be implemented in India too, the special correspondent said in his report. 

#ZBizExclusive | IPO की फाइलिंग से जुड़ी अहम खबर...

अब IPO की मंजूरी में कम समय लगेगा

IPO फाइलिंग के नियमों में राहत देगी सेबी

सेबी को इनफॉर्मल DRHP जमा कराकर भी कमेंट ले पाएंगी कंपनियां

जानिए पूरी डिटेल्स तरुण शर्मा से...@talktotarun @AnilSinghvi_ pic.twitter.com/7QBGpU0KUD

— Zee Business (@ZeeBusiness) May 11, 2022

Many companies who have made an apprehension to SEBI that competitors take advantage of the time taken to launch the IPO and due to which manipulation takes place, Sharma tells Managing Editor Anil Singhvi while explain the reason behind this move by SEBI. 

Sources tell Sharma that the SEBI is mulling to launch the discussion paper on the same this week, and will seek comments from the stakeholders, and then it shall be taken to the board for final approval on the same.  

He also informed this issue has already been discussed in the primary market advisory committee, post their deliberations – a discussion paper shall be released. 

Singhvi in his comment, termed this as a big move from the SEBI, if implemented and see the IPO launch process for the companies will be fast and easy.