Sebi chairman backs better pricing disclosures in new-age IPO documents

Pricing is a 'critical issue' for upcoming companies and small investors must be protected when they back them, says Ajay Tyagi.

The Securities and Exchange Board of India (Sebi) Chairman Ajay Tyagi said it is important to protect the interests of retail investors putting money into initial public offerings (IPOs).

Tyagi said a disclosure-based system and greater transparency from merchant bankers and issuers will help improve the trust in the system. He said this may be a good time for the Association of Investment Bankers of India (AIBI) to review the standards of due diligence adopted by merchant bankers.

“We do not want to dictate IPO valuations. But pricing is critical. Better explanation on the basis of which pricing is arrived at in