SEBI affirms it will not dictate IPO pricing and will let the market decide

Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey clarified that SEBI will not intervene in determining the valuations of initial public offerings (IPOs), emphasising that pricing remains the prerogative of the market.

Speaking at a public event, Pandey stated that “we don’t determine what the valuation is. This is (in) the eyes of the beholder, the investor.”

The comments reflect mounting scrutiny of recent IPOs, particularly in the new-age sector, where concerns have emerged about high valuations.

Pandey further stressed that SEBI’s role is to ensure fair and transparent markets rather than to fix issue prices, underlining that valuation should be driven by investor demand and market conditions.

In addition to his remarks on IPO valuations, Pandey mentioned that SEBI is reviewing its regulatory framework with a view to simplify, rationalise and contextualise regulations in consultation with industry and investors, emphasising the need for boards and companies to institutionalise ethics and governance.