SEBI Embraces AI for Swift IPO and Mutual Fund Approvals

SEBI Chairperson Madhabi Puri Buch announced the integration of AI technologies to expedite the approval process for IPOs and mutual funds, significantly reducing waiting times. With only a few applications outstanding, SEBI's adoption of AI promises further efficiency as India's equity markets continue to thrive, alongside emerging investment opportunities.

The Securities and Exchange Board of India (SEBI) is actively exploring artificial intelligence to accelerate the approval process for initial public offerings (IPOs) and mutual fund applications. SEBI Chairperson Madhabi Puri Buch, speaking at the SEBI Samvad symposium, highlighted several AI-driven projects underway within the organization aiming to expedite application processing.

Buch revealed impressive improvements in approval timelines, noting that as of November 2024, only two IPO applications and one mutual fund application had been pending for over six months, compared to considerably higher figures in March 2022. The integration of AI is anticipated to further streamline these processes amidst a booming IPO market observing significant equity raises.

She also emphasized the importance of financial inclusion and proposed a Rs 250 systematic investment plan (SIP) for mutual funds to enhance accessibility. Additionally, Buch discussed potential growth in REITs, InvITS, and municipal bonds over the next decade and noted India's increased weight in the MSCI Index, boosting global investment inflows.

(With inputs from agencies.)