Sebi flags valuation concerns in corporate deals, calls for more safeguards

Sebi's Kamlesh Chandra Varshney voiced concerns over inflated valuations in IPOs and corporate arrangements, urging stronger frameworks to protect minority shareholders and simplify compliance

Securities and Exchange Board of India (Sebi) whole-time member, Kamlesh Chandra Varshney, on Friday expressed concern over valuations of initial public offerings (IPOs) and certain corporate arrangements, calling for stronger guardrails to protect minority shareholders.

 

“There are cases we have seen where corporate arrangements are taking place and promoter-shareholders probably get valuation at an inflated price to get a better swap allocation, which is detrimental to minority shareholders. We are receiving lots of complaints from these minority shareholders that their interests have been compromised,” Varshney said at the Gatekeepers of Governance event organised by Excellence Enablers. 

Valuation of such arrangements